Which of the following statements is correct?
A. A single bank can legally lend an amount equal to its total reserves.
B. When borrowers repay bank loans, the money supply is increased.
C. A bank can only grant loans to customers if it has excess reserves.
D. When borrowers take out bank loans, the money supply is decreased.
Answer: C
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Which of the following does NOT cause a shift in the supply curve for labor in an industry?
A) Worker tastes and preferences B) Population of the concerned region C) Opportunity costs faced by the workers D) Price of the final good that the labor is used to produce
Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
A. capital inflow. B. capital outflow. C. current account outflow. D. unilateral transfer.
If the industry depicted in the graph comprises only one seller, the profit-maximizing price and quantity will be
A. P3 and Q3. B. P1 and Q3. C. P2 and Q2. D. indeterminate on the basis of the information given.
Compared to 1955, Americans typically spend ______ of every consumer dollar on services.
A. less B. substantially less C. the same percentage D. more