If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is

A) 2.5.
B) 1.67.
C) 2.3.
D) 0.651.


C

Economics

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While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2. B) 1/4. C) 2. D) 4. E) An amount that cannot be calculated without more information.

Economics

Of the following, who gains because of tariffs and why?

A) domestic producers of protected goods because they can sell at a higher price B) domestic buyers because they can be sure of buying high-quality products C) foreign producers because they earn more total revenue D) foreign government because they gain more revenue E) domestic buyers because they pay a lower price

Economics

Which is not one of the four basic questions used by economists to break down problems?

A. What do others think? B. What are the trade-offs? C. How will others respond? D. Why isn't everyone already doing it?

Economics

The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that

a. it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line b. early economists began drawing them in this way and the convention has continued throughout the years c. output eventually reaches a maximum and then declines d. resources are not perfectly adaptable to the production of all goods e. the frontier will shift outward over time

Economics