The money-multiplier process is based on the principle of fractional reserve banking.
Answer the following statement true (T) or false (F)
True
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The New Deal
A. may be summarized by these words: relief, recovery, and reform. B. introduced Medicare and Medicaid. C. succeeded in quickly extending the Great Depression. D. reduced the economic role of the federal government.
Keynes' speculative demand for money arises because
A) individuals are continually trying to maximize their wealth and income. B) money is necessary to finance transactions. C) there are costs to switching between money and interest-earning assets. D) capital gains on bonds held can be made when interest rates are rising.
Suppose that the price elasticity of demand for bagels is 1.60, a 10% increase in price will decrease the quantity demanded by 6%.
Answer the following statement true (T) or false (F)
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, Joe's opportunity cost of selling a truck is selling:
A. 4 cars. B. 1 car. C. 9 cars. D. 1/3 of a car.