In the nation of Wiknam, the money supply is $80,000 and reserves are $18,000 . Assuming that people hold only deposits and no currency, and that banks hold no excess reserves, then the reserve requirement is
a. 29 percent.
b. 22.5 percent.
c. 16 percent.
d. None of the above is correct.
b
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Which of the following statements is true?
A) Data are facts established by observation and measurement. B) Theories are statistics that describe the real world. C) Hypotheses are predictions that can be tested with data. D) Empirical evidences are facts, measurements, or statistics that describe the world.
Refer to Figure 5.1. All else equal, an increase in the capital stock will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.
Karl Marx viewed socialism only as a transition to the ideal state of communism
a. True b. False Indicate whether the statement is true or false
Monopolistic competition is similar to perfect competition in that:
A. firms advertise in both cases. B. both entail the production of differentiated products. C. output is at minimum average total cost in both. D. long-run profits tend toward zero in both.