After the transaction in Table 13-1 is completed, what happens to actual reserves, required reserves, and excess reserves? Assume the required reserve ratio is 25 percent
a. Actual reserves increase by $10 million, required reserves increase $2.5 million, and excess reserves increase by $7.5 million.
b. Actual reserves decrease by $10 million, required reserves decrease $2.5 million, and excess reserves decrease by $7.5 million.
c. Actual reserves increase by $10 million, required reserves are unchanged, and excess reserves increase by $10 million.
d. Actual reserves decrease by $10 million, required reserves decrease by $10 million, and excess reserves are unchanged.
c
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Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?
A. The services of health care workers B. The services of military personnel C. Goods and services produced in the underground economy D. The construction of new buildings
The choice of a voter to remain uninformed because the marginal cost of obtaining information is greater than the marginal benefit from obtaining knowledge is called:
a. irrational ignorance. b. rational ignorance. c. collective interest. d. choice.
Refer to the above figure. Which diagram shows the effect on the market of cellphones when the demand for cellphones has increased?
A. graph C B. graph D C. neither graph D. both graphs
What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?
A) If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. B) If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. C) If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. D) If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.