If the reserve ratio is 6 percent, then $9,000 of additional reserves can create up to
a. $159,000 of new money.
b. $54,000 of new money.
c. $150,000 of new money.
d. $141,000 of new money.
c
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Answer the following statement(s) true (T) or false (F)
1. Economics is the study of the choices we make among our many wants and desires given our limited resources. 2. The main economic problem is that surplus causes us to choose from so many competing options that it is difficult to make the correct choice. 3. Every society, whether it is capitalistic, socialistic, and totalitarian, faces economic problems. 4. Economists assume that most individuals act as if they are motivated by an interest in making money.
Relating to the Economics in Practice on page 337: A number of companies are using their own internal carbon taxes to reflect the social cost of carbon emissions on the environment. The price per ton of carbon emissions that they are using
A) has been set by the government. B) has been agreed to by the private sector. C) is not standardized. D) is the price established by the EPA
What is government failure, and how would it be demonstrated on a production possibilities curve?
What will be an ideal response?
The point where diminishing marginal returns has begun to affect production is best characterized by the point where the:
A. marginal product curve begins to be negatively sloped. B. total product curve flattens out. C. average product curve begins to be negatively sloped. D. marginal product curve equals the average product curve.