If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the M1 money multiplier is
A) 2.5.
B) 2.8.
C) 2.0.
D) 0.67.
C
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According to the graph shown, if this economy were an autarky, producers would enjoy area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A.
B. ABC.
C. H.
D. HDE.
As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the world price for the domestically produced goods. b. the government wields the sole authority of importing goods from abroad. c. the government wields the sole authority of exporting goods. d. the domestic producers can charge the government a higher price for their products than they charge consumers. e. the government is required to sponsor research and development for the domestic firms.
A line graph comparing total cost and total revenue for a good in a perfectly competitive market will consist of two ascending lines representing total cost and total revenue. Where on these lines is maximum profit indicated?
a. The smallest gap between total revenue and total cost b. The point where total revenue passes total cost c. The point where total cost passes total revenue d. The largest gap between total revenue and total cost
Under rent control, bribery is a mechanism to
a. bring the total price of an apartment (including the bribe) closer to the equilibrium price. b. allocate housing to the poorest individuals in the market. c. force the total price of an apartment (including the bribe) to be less than the market price. d. allocate housing to the most deserving tenants.