Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If the Fed reduces the required reserve ratio to 10%, the bank will now have excess reserves of
A) $0.
B) $10 million.
C) $20 million.
D) $30 million.
B
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A goal of equality of income can be justified based on the utilitarian idea that _____
a. individuals face diminishing marginal utility of income b. social welfare functions are convex to the origin c. rich people have more than they every could need d. redistribution does not lead to an increased excess burden of taxation
If a major league baseball player would be willing to work for $500,000 per year and is currently being paid $1,200,000 per year, the opportunity cost of his decision to play baseball is
A) $500,000. B) $1,200,000. C) $1,700,000. D) $700,000.
A.P. Lerner believes that society maximizes its total utility when income distribution is
a. perfectly equal, assuming individual utility functions are different b. perfectly equal, assuming individual utility functions are the same c. perfectly unequal, assuming individual utility functions are the same d. perfectly unequal, assuming individual utility functions are different e. whatever the market dictates because individual utility functions are different
Figure 33-4
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Which panel in Figure 33-4 shows what happened in 2007–2009?
A. 1 B. 2 C. 3 D. 4