If the banking system has $50 billion in excess reserves, and the required reserve ratio is 25 percent, what is the maximum amount by which the money supply can be increased?
a. $250 billion
b. $200 billion
c. $50 billion
d. $25 billion
B
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When are black markets likely to arise?
A) when the government removes a price floor B) when the government enforces a price ceiling C) when there is a surplus of a good D) when the quantity supplied of a good exceeds the quantity demanded
Answer the following statements true (T) or false (F)
1. Macroeconomics is concerned with the study of the nation-wide market for specific goods like oranges. 2. The comment that "taxes must be reduced for the good of the economy" is an example of a normative economic statement. 3. "The role of government in the economy should be kept to a minimum" is an example of a positive economic statement. 4. The economizing problem for individuals arises from the conflict between having relatively unlimited time and relatively limited jobs to do.
A nation's average annual real GDP growth rate is 5%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 14.4 years. B. 12.5 years. C. 10 years. D. 16.2 years.
GDP ignores transactions that take place in the underground economy.
Answer the following statement true (T) or false (F)