Suppose the reserve requirement is 10 percent and a person deposits $1,500 in a local bank. The local bank can now create a maximum of:
a. $150 in additional money, by lending $150.
b. $15,000 in additional money, by lending $15,000.
c. $1,500 in additional money, by lending $1,500.
d. $1,350 in additional money, by lending $1,350.
e. $135 in additional money, by lending $135.
d
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It has been noted that a country that grants a considerable amount of economic freedom will experience
A) positive rates of per capita income growth. B) low levels of political freedom. C) dead capital. D) negative rates of per capita income growth.
The firm's short run supply curve is equal to the
A) entire marginal cost curve. B) marginal cost curve above the AVC curve. C) marginal cost curve above the ATC curve. D) marginal cost curve above the AFC curve.
Which of the following can result in a decrease in the demand for I-Pods in the short run?
A) a decrease in the population B) a decrease in real household incomes C) a decrease in the price of MP4s D) All of the above
All of the following are true for sequential games except which one?
A) Backward induction can be used to determine the Nash equilibrium of sequential games. B) Forward induction can be used to determine the Nash equilibrium of sequential games. C) A classic example of a sequential game is an entry game. D) Sequential games are illustrated as game trees.