Given a required reserve ratio of 20 percent for all banks, total bank reserves of $300 billion could support maximum deposits of:
A. $2,000 billion.
B. $1,200 billion.
C. $1,500 billion.
D. $60 billion.
Answer: C
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If you were a supply-side economist, you would argue that
a. reductions in government spending cut basic public goods, such as roads which hurts the private sector, particularly private investment b. increases in government spending stimulates the economy as a whole which would include the private sector c. increases in government spending cause private sector investment to fall because the government competes with the private sector for investment funds and this leadsto higher interest rates d. reductions in government spending cause private sector investment to fall because the government raises interest rates by borrowing e. increases in private consumption is good for the private sector of the economy and for the government as well because people with more income pay more tax
Which of the following is true of a natural experiment?
A. A natural experiment occurs when some endogenous event changes the environment in which individuals, families, firms, or cities operate. B. The control group in a natural experiment is randomly chosen. C. The treatment group in a natural experiment is randomly chosen. D. Control and treatment groups in a natural experiment arise due to an exogenous event.
Which statement is true?
A. On the production possibilities frontier, unemployment is zero percent. B. On the production possibilities frontier, 85 percent of the labor force is employed. C. To get out of a recession, we must move to some point closer to the production possibilities frontier. D. To have economic growth, we must have zero unemployment.
If Thailand is more efficient at producing fax machines and telephone answering machines than Malaysia, then Thailand enjoys a(n) _____ advantage over Malaysia in the production of these products.
Fill in the blank(s) with the appropriate word(s).