Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?
A) The Fed sets the required reserve ratio.
B) The Fed is able to affect the level of reserves in the banking system.
C) Banks loan out all of their excess reserves.
D) The simple deposit multiplier is equal to 1 divided by the required reserve ratio.
C
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In the figure above, moving from point B to point D
A) has an opportunity cost of one ton of butter per month. B) has an opportunity cost of one ton of guns per month. C) requires an increase in technology. D) is impossible.
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%
a. True b. False Indicate whether the statement is true or false
Comparing a set of feasible alternatives and picking the best one is an optimization process called _________.
A. statistical inference B. likelihood estimation C. cost-benefit analysis. D. normative analysis.
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. Panel D shows a curve which has a slope that is
A. first negative and then positive. B. infinite throughout. C. zero throughout. D. first positive and then negative.