The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is
A. (1 / R)(D? R).
B. R× D.
C. (1 / R)(1 ? R)D.
D. (1 / R)D.
Answer: C
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An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 4 TVs B. 1/3 TV C. 1/6 TV D. 1/12 TV
To be a member of the Internal Monetary Fund a nation must deposit funds based on
A. the need to loan money to developing nations. B. its national income. C. rules set up by the World Bank. D. the amount of funds it wants to deposit.
How is accounting profit calculated?
What will be an ideal response?
In 2016, Ford's sales were rising, but in early 2017, Ford's sales declined. Ford and the U.S. automobile industry were experiencing the effects of
A) inflation. B) the underground economy. C) the business cycle. D) depreciation.