If your bank receives a checkable deposit that results in $20,000 in excess reserves, and the banking system makes loans totaling $60,000, the maximum possible, then the money multiplier must be:
A. 2.
B. 3.
C. 3.5.
D. 4.
Answer: D
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In the above table, the government sector balance runs a ________ and net exports runs a ________
A) surplus of $100 billion; deficit of $200 billion B) deficit of $100 billion; surplus of $200 billion C) surplus of $100 billion; surplus of $200 billion D) deficit of $100 billion; deficit of $200 billion
Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above
What is Bobby's expected income from taking this job? A) $4,000 B) $6,000 C) $2,000 D) $10,000
Which of the following is most likely to reduce the nominal market wage in a job category?
a. The job is widely viewed as dangerous. b. The job is prestigious, and the work is quite interesting. c. The job requires employees to work the night shift from 11 p.m. to 7 a.m. d. The job requires employees to move from city to city quite often.
Table 16.2Given the data in Table 16.2, if Firm A were to reduce pollution from 100 gallons of wastewater per day to 0 gallons per day, production costs:
A. would increase by $7. B. would decrease by $7. C. would not change. D. cannot be calculated from the information given.