Suppose a commercial banking system has $240,000 of outstanding checkable deposits and actual reserves of $85,000. If the reserve ratio is 25 percent, the banking system can expand the supply of money by a maximum of:
A. $75,000
B. $25,000
C. $5,000
D. $100,000
D. $100,000
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In which market structure are there a small number of firms competing?
A) only monopoly B) only oligopoly C) perfect competition D) monopolistic competition E) either monopoly or oligopoly
If the minimum wage increased, then at any given rate of inflation
a. both output and employment would be higher. b. neither output nor employment would be higher. c. output would be higher and unemployment would be lower. d. output would be lower and unemployment would be higher.
A firm in a perfectly competitive market:
A. must take the price that is determined in the market. B. must reduce its price if it wants to sell a larger quantity. C. must be large relative to the total market. D. can exert a major influence on the market price.
If nominal Gross Domestic Product (GDP) is $5 trillion and velocity is 5, then
A. actual money balances held by the nonbanking public are $1 trillion. B. actual money balances held by the nonbanking public are $5 trillion. C. real Gross Domestic Product (GDP) equals $100 trillion. D. real Gross Domestic Product (GDP) equals $500 trillion.