If a new cash deposit creates excess reserves of $5,000 and the required reserve ratio is 10 percent, the banking system can increase the money supply by a maximum of
a. $50,000.
b. $500.
c. $5,000.
d. $4,500.
a. $50,000.
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A higher desired level of capital and investment will result from ________
A) a decrease in productivity B) a fall in expected future output C) a depressed economy D) a booming economy
Which of the following is true?
A. In the short run, a monopoly will shut down if P < AVC. B. A monopolist produces on the inelastic portion of its demand. C. A monopolist always earns an economic profit. D. The more inelastic the demand, the closer marginal revenue is to price.
When a firm's LRAC curve is still declining when it intersects the market demand curve, we call the firm a(n)
A. natural monopolist. B. monopolistic competitor. C. perfect competitor. D. oligopolist.
Use the following table to answer the question below. GDP figures are in billions of dollars.YearNominal GDPReal GDPPrice Index15,2004,800--25,500--11235,7505,000--What is the GDP price index in year 1?
A. 111.5 B. 109.6 C. 108.3 D. 105.2