Isabel receives a check for $7,000 from Kermit and deposits it in her bank. Suppose that the reserve ratio is 10 percent. As a result of this transaction the money supply will:
A. increase by $70,000.
B. decrease by $63,000 and then increase by $70,000.
C. decrease by $70,000 and then increase by $63,000.
D. not change.
Answer: D
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In this economic growth and production possibilities curve, economic growth is represented by the ______.
a. y-axis
b. x-axis
c. area between points A and E
d. area between the two curves
Despite the Obama administration's support of the Trans-Pacific Partnership (TPP), the AFL-CIO labor union has argued that the TPP will not
A) protect the environment.
B) ensure safe imports.
C) create jobs.
D) all of the above
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The figure above shows the market for milk. If the efficient quantity of milk is produced, the consumer surplus is
A) $100. B) $400. C) $200. D) $600.