If the required reserve ratio is .2 and reserves initially decline by $25, demand deposits can decline by
A) $125.
B) $50.
C) $25.
D) $5.
A
Economics
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Assume that Figure 4-16 shows the supply of orange juice. A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
A. S1to S2. B. S2to S1. C. S3to S2. D. S3to S1.
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Explain the difference between comparative advantage and absolute advantage. Give an example of each.
What will be an ideal response?
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Demand-side economists treat saving as a leakage from potential spending.
Answer the following statement true (T) or false (F)
Economics
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/250 B. 500 C. 1/500 D. 1/10
Economics