If the banking system has $5 million in excess reserves, and the required reserve ratio is 25 percent, what is the maximum amount by which the money supply can be increased?
a. $25 million
b. $20 million
c. $5 million
d. $2.5 million
b
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Asymmetric information will always cause
A) efficiency problems. B) equity problems. C) Both A and B. D) None of the above.
Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care remain the same?
A) If supply shifts more than demand. B) If demand shifts more than supply. C) If both demand and supply shift by the same magnitude. D) If supply and demand shift in the same direction.
The Profit & Loss Statement lists:
a. Assets and Expenses b. Assets and Liabilities c. Net Income and Owner's Equity d. Income and Expenses
If the absolute price elasticity of demand is 2, a 10 percent increase in the price will cause
A. the quantity demanded to decrease by 2 percent. B. the quantity demanded to decrease by 20 percent. C. the quantity demanded to decrease by 50 percent. D. the quantity demanded to decrease by 5 percent.