If the required reserve ratio is 0.25 and the First National Bank holds $10 million in demand deposits and $5 million in reserves, how much more in demand deposits is this bank capable of creating?
a. $0
b. $0.625 million
c. $1.875 million
d. $2.5 million
e. $10 million
D
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Describe how a pollution-control authority might use an emissions permits system to reduce pollution
The curve showing the amount of real output, or real GDP, that will be made available by sellers at various price levels is called the
A. aggregate demand curve. B. real gross domestic investment curve. C. aggregate supply curve. D. Keynesian cross.
Use the above table. The MPC is
A. 0.09. B. 0.91. C. 0.80. D. 0.20.
Answer the following questions true (T) or false (F)
1. If the market price is at equilibrium, the deadweight loss is maximized. 2. If the market price is at equilibrium, the producer surplus is minimized. 3. The sum of consumer surplus and producer surplus is called economic surplus.