With a required reserve ratio of 20 percent, an increase in reserves of $10,000 could lead to a maximum increase in checking account deposits in the entire banking system of
A) $2,000.
B) $8,000.
C) $50,000.
D) $100,000.
Answer: C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The common term for a severe recession is a
A) bottoming out. B) economic adjustment. C) depression. D) downturn.
When a consumer spends all of his or her income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the
A) consumer's total utility is maximized. B) consumer is in his or her consumption equilibrium. C) marginal utilities for each good are maximized. D) Both answers A and B are correct.
The poverty rate dropped from 84 percent in 1981 to 11.2 percent in 2010 in what country?
A. China B. Chile C. South Africa D. India