The total amount of money the banking system can create with an initial deposit (ID) of $10,000 and a legal reserve ratio (LRR) of 25 percent is
a. $30,000
b. $2,500
c. $7,500
d. $10,000
e. $40,000
E
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Which of the following statements correctly identifies a difference between labor and capital?
A) Capital can be rented or owned by a firm, but labor cannot be owned. B) Labor can be rented or owned by a firm, but capital cannot be owned. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas capital is hired until a point where the average product of capital equals the price of capital. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas capital is hired until a point where the marginal product of capital equals the price of capital.
Assume that a country has a domestic demand curve defined as Qd = 100 - 2P and a domestic supply curve defined as Qs = -20 + 3P. What is the country's import demand curve (Qm)?
What will be an ideal response?
Unemployment caused by a recession, assuming the time it takes to find a job constant, is called:
A. natural unemployment. B. frictional unemployment. C. cyclical unemployment. D. structural unemployment.
Total capital is the sum of
What will be an ideal response?