If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is
A) 2.54.
B) 2.67.
C) 2.35.
D) 0.551.
A
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080What is the maximum a scarf would be traded for in this example?
A. 1/2 of a scarf B. 3 scarves C. 2 scarves D. 1/3 of a scarf
Because of the biases in calculating the CPI, actual inflation is
A) accurately measured. B) less than the measured inflation rate by about 1 percent per year. C) more than the measured inflation rate by about 1 percent per year. D) more than the measured inflation rate by about 1 percent per month.
For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output. B) the producer has an incentive to decrease output. C) the producer has no incentive to change production. D) economic profits must be positive.
Continued inflation occurs
A) if there is a sustained increase in the price level. B) only if there is a sustained increase in the price of every good and service. C) only if there is a sustained increase in the price of every good and service by the same dollar amount. D) only if there is a sustained increase in the price of every good and service by the same percentage.