If a deposit of $50 in the banking system can lead to a maximum expansion in bank deposits of $250, using the money multiplier formula, the required reserve ratio must be:

A. 40 percent.
B. 20 percent.
C. 25 percent.
D. 50 percent.


Answer: B

Economics

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a. True b. False Indicate whether the statement is true or false

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Which of the following statements is true?

A. To maximize profits, a firm must maximize total revenue. B. In long-run equilibrium, a competitive firm produces at the point of minimum average total cost. C. In the short-run, a perfectly competitive firm produces where total cost is minimum. D. In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.

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Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.?Figure 5.2Refer to Figure 5.2. If the price of a hamburger decreases from $6 to $4, the price elasticity of demand equals ________. Use the midpoint formula.

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Economics