If banks faced a 100 percent reserve requirement, a $10,000 addition to banking reserves would increase the money supply by:
a. $100
b. $1,000.
c. $10,000.
d. $100,000.
c
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If marginal cost is less than average total cost, then ________ is ________
A) average total cost; falling B) average variable cost; falling C) marginal cost; falling D) marginal cost; rising
The economic question of "what to produce" is often referred to as the distribution question
a. True b. False
Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:
A. deflated to $678 billion. B. deflated to $896 billion. C. inflated to $1,080 billion. D. deflated to $1,080 billion.
If a tax is placed on perfectly competitive firms that impose external costs on society, the firm's marginal cost curve will shift ________ and the industry supply curve will shift to the ________.
A. up; left B. down; right C. down; left D. up; right