Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of
A) $0. B) $800. C) $7,200. D) $8,000.
C
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The principal distinction between positive analysis and normative analysis is that
A) positive analysis is useful and normative analysis is not useful. B) positive analysis is optimistic and normative analysis is neutral. C) economists always agree on the conclusions of positive analysis but could disagree on the conclusions of normative analysis. D) positive analysis tells us "what is," but normative analysis tells us "what ought to be."
Refer to Scenario 2.1. If P = $15, which of the following is true?
A) Quantity supplied is greater than quantity demanded. B) Quantity supplied is less than quantity demanded. C) Quantity supplied equals quantity demanded. D) There is a surplus.
A situation in which the price charged is equal to society's opportunity cost is known as
A) market failure. B) marginal monopoly pricing. C) marginal profits. D) marginal cost pricing.
CPI refers to
a. the cost of producing a market basket of goods. b. the price of a market basket of goods. c. the Consumer Price Index. d. both the price of a market basket of goods and the Consumer Price Index.