Assume the M2 multiplier is 3, and the reserve ratio is 10%. If the central bank sells $100 million in government securities to banks, banking system reserves will:
a. Fall by $10 million.
b. Rise by $10 million.
c. Not change.
d. Rise by $300 million.
e. Fall by $100 million.
.E
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In the economic sense, almost everything is scarce. ________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price
A) Scarcity B) A surplus C) An overstock D) A shortage
In economics, marginal means
a. incremental or decremental b. unimportant c. level or size d. a border-line situation e. a bad alternative
The most direct opportunity cost of having large families in an LDC such as Egypt is the
a. loss of its customs and traditions b. benefit of having more hands to help on the farm c. larger tax revenues government collects from families d. sacrifice of per capita material goods and services e. political instability generated by population size
Which of the following statements is correct?
a. Opportunity costs equal explicit minus implicit costs. b. Economists consider opportunity costs to be included in a firm's total revenues. c. Economists consider opportunity costs to be included in a firm's costs of production. d. All of the above are correct.