If the demand for one good decreases when the price of another good increases, the two goods are ________ goods.
A. normal
B. inferior
C. complementary
D. substitute
Answer: C
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Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
If the marginal product of labor rises, the marginal cost of output
a. rises b. falls c. remains constant d. rises and then falls e. dampens
To say that a price ceiling is binding is to say that the price ceiling
a. results in a surplus. b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.
Which statement is false?
A. Foreigners own a much greater percentage of the assets in the U.S. then they did in the early 1980s. B. Americans have assets of over $1 trillion in foreign countries. C. The dollar value of assets held by Americans in foreign countries has been declining since 1985. D. None of these statements are false.