Suppose Warren Buffet withdraws $1 million from his checking account at Chase Bank. If the required reserve ratio is 20 percent, what is the maximum change in deposits in the banking system?
A) -$5 million B) -$4 million C) -$200,000 D) $1 million E) $5 million
A
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Who of the following has been prominently accused of acting on the basis of the "edifice complex?"
a. the Environmental Protection Agency? b. A. C. Pigou c. the Army Corps of Engineers d. environmental activists
In which case can we be sure real GDP rises in the short run?
a. foreign economies expand and government purchases rise. b. foreign economies expand and government purchases fall. c. foreign economies contract and government purchases fall. d. foreign economies contract and government purchases rise.
Automobiles and many other products are differentiated. As a result
A) different countries may each have a comparative advantage in producing different types of automobiles. B) consumers of automobiles have difficulty deciding what type of imported automobile to buy. C) the quality of imported automobiles is less than it could be. D) we see countries specializing completely in the production of automobiles.
If the short-run average variable cost of production for a firm is decreasing, then it follows that:
A. Average variable cost must be above average fixed cost B. Marginal cost must be below average variable cost C. Average fixed cost must be constant D. Marginal cost must be decreasing