The multiple by which the commercial banking system can expand the supply of money is equal to the reciprocal of:
A. its excess reserves.
B. the interest rate.
C. its actual reserves.
D. the reserve ratio.
Answer: D
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The tragedy of the commons was avoided in the Middle Ages in much the same way economist Elinor Ostrom's research suggested. Which of the following ways reflects Ostrom's findings, and was actually conducted in the middle ages?
A) Common grounds were sold to individuals. B) Local law enforcement monitored entry into the commons. C) There was social pressure to uphold traditionally accepted limits on family. D) The government imposed a tax for the use of the commons.
Refer to the figure above. After the demand curve shifts to D2, if the price is held below the new equilibrium, then:
A) the quantity demanded will equal the quantity supplied. B) the quantity demanded will be greater than the quantity supplied. C) the quantity demanded will be less than the quantity supplied. D) there will be zero deadweight loss.
Given the table below, the maximum amount that can be produced using 20 workers is 
A. 26.5 units. B. 442 units. C. 420 units. D. 22 units. E. 530 units.
In the long run, real output can be less than, equal to, or greater than the economy's potential output.
a. true b. false