If the reserve ratio increased from 5 percent to 10 percent, then the money multiplier would
a. rise from 5 to 10
b. rise from 10 to 20.
c. fall from 20 to 10.
d. fall from 10 to 5.
c
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When market price is higher than the equilibrium price, a surplus is created. This will put downward pressure on price, causing quantity demanded to increase and quantity supplied to decrease until equilibrium is reestablished
Indicate whether the statement is true or false
During the 800 years between 1000 and 1800, the increases in both world income per person and life expectancy at birth were small, but both of these indicators have increased sharply during the past 200 years
a. true b. false
Refer to the diagram. The profit-maximizing level of output for this firm:
A. is at point a.
B. is at point b.
C. is at point c.
D. cannot be determined from the information given.
Assume a round of golf requires four hours of leisure time, and attending a concert requires two hours. If the price of a round of golf is $40 and the price of a concert is $80, characteristics, Joe will play:
A. Golf but not attend concerts, since golf is cheaper B. Golf twice as often as he attends concerts C. Less golf whenever he receives a large raise D. Relatively less golf and attend relatively more concerts whenever his leisure time becomes more scarce