A commercial bank's reserve ratio equals the ratio of its reserves to its:
A. required reserves.
B. assets.
C. deposits.
D. excess reserves.
Answer: C
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A trough in the business cycle occurs when
A. the inflation rate is at its lowest level. B. the natural rate of unemployment is at a minimum point. C. cyclical unemployment is at a minimum point. D. employment and output reach their lowest levels.
To maximize worldwide gains from trade, the country that should produce a good is the country that
a. has the lowest opportunity cost of producing it b. can produce that good using the fewest resources c. will produce that good using the most expensive resources d. has the most desire for that good e. has produced that good in the past
Farmers can produce wheat and/or rice. What will happen in the wheat market if there is an increase in the price of rice?
A. Wheat supply will increase. B. Wheat supply will decrease. C. Wheat demand will increase. D. Wheat demand will decrease.
Refer to the graph shown. The shift in the short-run Phillips curve shown is most likely to be caused by:
A. a decrease in expected inflation. B. a decrease in labor productivity. C. an increase in labor productivity. D. an increase in expected inflation.