The money multiplier is approximated as being equal to:

A. one divided by the reserve ratio.
B. one divided by the federal funds.
C. demand deposits multiplied by the interest rate.
D. demand deposits multiplied by the reserve ratio.


A. one divided by the reserve ratio.

Economics

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The total value to society of having garbage removed is greater than the value of baseball games. Why, then, are baseball players paid more than garbage collectors?

A) Garbage removal results in significant external benefits that are not captured in the price paid for garbage removal. As a result, wages of garbage collectors do not reflect their social benefits. B) There is greater competition in the garbage collection industry than there is in Major League Baseball. C) Wages do not depend on total values but marginal values. The marginal revenue product of baseball players exceeds the marginal revenue product of garbage collectors. D) Although the total value of garbage removal is greater than the total value of baseball, wages are determined by average values.

Economics

In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?

a. Current unemployment rate and labor force participation rate b. Annual inflation rate during the past year c. Current real exchange rate d. Percentage change in nominal GDP during the past year e. Current nominal exchange rate

Economics

The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Qd, where Qd is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information, we can say that

What will be an ideal response?

Economics

Refer to Scenario 9.4 below to answer the question(s) that follow. SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.Refer to Scenario 9.4. Suppose the average price per sandwich is $5.50. What is the annual profit of the deli?

A. -$22,000 B. $78,000 C. $130,000 D. $244,000

Economics