Assume the required reserve ratio is 16.67 percent and that the commercial banking system has $110 million in excess reserves. The maximum amount of new money which the banking system could create is about:
A. $110 million
B. $330 million
C. $660 million
D. $1,353 million
C. $660 million
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If the interest rate on euro-denominated assets is 13 percent and it is 15 percent on peso-denominated assets, and if the euro is expected to appreciate at a 4 percent rate,
for Manuel the Mexican the expected rate of return on euro-denominated assets is A) 11 percent. B) 13 percent. C) 17 percent. D) 19 percent.
Seasonal adjustment
A) should never be used. B) is rarely used. C) is a common characteristic of macroeconomic time series in wide use. D) is not used by modern macroeconomists.
Firms in perfectly competitive markets who wish to maximize profits ought to produce:
A. where total profit is the greatest. B. at capacity and plan to expand in the long run. C. where marginal revenue equals market price. D. as many units as their scale allows.
Which of the following statements is FALSE?
A. The federal budget deficit in 2020 was about 4 percent of the GDP. B. The public debt of $10 billion is the accumulated debt of all U.S. individuals, firms, and institutions. C. A budget deficit of $10 billion in a given year increases the public debt by $10 billion. D. During the past five years, the U.S. public debt has been increasing.