If the legal reserve requirement decreases, the
a. money multiplier increases
b. money multiplier decreases
c. amount of excess reserves the bank has decreases
d. money multiplier stays the same
e. amount of excess reserves stays the same
A
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Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as:
120 = UL + UB where UL is Lisa's utility and UB is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is: A) inefficient. B) economically efficient. C) impossible, because it is outside of the welfare frontier. D) none of the above
Low productivity in the U.S. appreciates the dollar in the foreign exchange market
Indicate whether the statement is true or false
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
What will be an ideal response?
Unscrupulous managers have learned ways to manipulate stock options and undermine their benefits to stockholders. Discuss some provisions that could be built into the process to curb such practices.
What will be an ideal response?