Assume that the Federal Reserve has purchased a $1,000 security from an individual, the required reserve ratio is 20 percent, and that individual deposits the proceeds in his bank. What is the increase in excess reserves for this bank?
a. $200
b. $1,000
c. $1,200
d. $800
e. $2,000
D
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In 2006, before the start of the recession, the employment-population ratio was 63.4 percent. In August 2015, more than six years after the end of the recession, the ratio
A) was still 50 percent lower than the ratio in 2006. B) had increased to 72.3 percent. C) was still only 59.4 percent. D) was back to its 2006 level.
The term underground economy refers to
a. the coal-mining industry b. all ore mining c. the subway system d. purely illegal activity e. market activity not reported to the government
Consumer's surplus can be written as
a. total expenditure ? total utility. b. total utility ? total expenditure. c. marginal utility ? marginal expenditure. d. marginal expenditure ? marginal utility.
Alfred Chandler, the noted business historian, indicated that "the administrative load of the senior executives increased to such an extent that they were unable to handle their entrepreneurial responsibilities efficiently." He was speaking of the
A. Uform of business organization. B. matrix form of business organization. C. Mform of business organization. D. mixed design.