Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of:
A. $250,000.
B. $125,000.
C. $62,500.
D. $0.
Answer: D
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When a firm increases its capital usage
a. the total product curve can be expected to fall. b. the total product curve can be expected to rise. c. the marginal product of labor always rises. d. the marginal product of labor always falls
The value of the deposit multiplier is 1 divided by the required reserve ratio.
Answer the following statement true (T) or false (F)
If output growth exceeds population growth for a country,
A. This country must have overcome the problem of opportunity costs. B. GDP must have fallen at a very rapid rate. C. Average living standards will increase. D. Per capita GDP will decrease.
Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. The slope of the isocost line is
A. -2. B. -1/2. C. 1/2. D. 2.