A bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio?
a. 2 percent.
b. 3 percent.
c. 6 percent.
d. 12 percent.
c
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If a government could successfully achieve the maximin criterion, each member of society would have an equal income
a. True b. False Indicate whether the statement is true or false
Traditional economists prefer simpler models because they give clear-cut results that can better highlight certain important insights.
Answer the following statement true (T) or false (F)
Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries C) Yes, competition from overseas firms can substantially limit domestic firms' market power. D) There is no way to know.
According to the classical model, desired saving is
A. affected by the money illusion at low income levels. B. identical to the demand for saving at each level of real GDP. C. equal to desired investment. D. a function of real GDP.