If the required reserve ratio is 10 percent and a bank receives a deposit of $1,000, how much may the bank loan out?
A. $100
B. $200
C. $900
D. $300
Answer: C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Since most people prefer more money to less, the desire for more money
A) makes it difficult to induce people to cooperate. B) makes it difficult to induce people to sacrifice for the larger public good. C) makes social order highly unstable and unpredictable. D) can induce useful changes in behavior. E) implies people are living in a capitalist society.
If a poor country can "catch up" to a rich country, its productivity rises more rapidly than the productivity of the rich country
a. True b. False Indicate whether the statement is true or false
Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Firm X ($/day)$500$514$530$555$585Cost to Firm Y ($/day)$400$420$445$480$520Cost to Firm Z ($/day)$300$325$360$400$550 The least costly way of lowering smoke emissions from 12 tons to 9 tons per day would be for:
A. Firm X to emit 2 tons, Firm Y to emit 3 tons and Firm Z to emit 4 tons. B. Firm X to emit 1 ton, Firm Y to emit 4 tons and Firm Z to emit 4 tons. C. each firm to reduce emissions by 1 ton, emitting 3 tons each. D. Firm X to emit 4 tons, Firm Y to emit 3 tons and Firm Z to emit 2 tons.