The money ____ equals 1 divided by the reserve requirement. The larger the reserve requirement, the ____ the money multiplier
a. supply; larger
b. multiplier; larger
c. supply; smaller
d. multiplier; smaller
d
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Segregation can result from government policies, social pressures, and individual choices
Indicate whether the statement is true or false
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. Which of the following gives Kate's best response function?
A. QK = 200 - 0.01QK B. QK = 100 - 0.005QA C. QK = 2,000 - 0.5QK D. QK = 2,000 - 0.5QA
Which of the following is an obstacle that would reduce the likelihood of effective collusion among oligopolists?
a. a highly inelastic market demand for the product b. a small number of firms in the market c. production of a homogeneous product d. highly unstable demand for the product
Exhibit 11-10 GDP data (billions of dollars) Indirect business taxes$ 600 Depreciation950 Change in business inventories50 Compensation of employees5,400 Corporate profits700 Durable goods600 Exports100 Social Security taxes360 Transfer payments300 Fixed investment950 Government spending800 Imports150 Net interest500 Nondurable goods2,000 Personal taxes1,000 Rental income200 Services4,000 In Exhibit 11-10, and using the expenditures approach, compute net exports (X-M). Which of the following is correct?
A. $500 billion. B. $150 billion. C. $100 billion. D. -$50 billion.