Refer to Scenario 14-2. As a result of Kristy's deposit, checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of
A) $8,000. B) $10,000. C) $50,000. D) $100,000.
C
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Which of the following gives rise to a positive externality?
A) Sudden increase in the price of oil due to a supply shock B) Sudden increase in the demand for diamonds leading to an increase in their price C) Deforestation leading to the extinction of many species D) Consumption of a drug to cure a communicable disease
What is quantitative easing? What was the Fed's objective in implementing quantitative easing?
What will be an ideal response?
Price controls:
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it should be set below the market equilibrium wage. C. some workers will become unemployed as a result of the minimum wage. D. All of these are true.