Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply

A. increases $100,000.
B. increases $500,000.
C. increases $600,000.
D. decreases $500,000.


increases $500,000

Economics

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Recessions are largely the result of

A) high wages. B) the wishful thinking of zero economic growth advocates. C) widespread and systemic errors from manipulated market signals. D) none of the above.

Economics

For the economy as a whole, spending on advertising comprises about what percent of total firm revenue?

a. 0.5 b. 2 c. 10 d. 20

Economics

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars

A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.

Economics

In cases where there is low productivity in extraction methods for a common resource,

A. the resource becomes nonrival in consumption. B. overuse is more likely. C. overuse is less of a problem. D. the resource becomes excludable.

Economics