A bank which must hold 100 percent reserves opens in an economy that had no banks and a currency of $150 . If customers deposit $50 into the bank, what is the value of the money supply?
a. $50
b. $100
c. $150
d. $200
c
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The structural surplus
A) is legally required to be positive. B) fluctuates over the business cycle. C) is, by definition, equal to the negative of the cyclical deficit. D) equals the actual surplus plus the cyclical surplus. E) is the government budget surplus that would exist if the economy was at full employment.
Transferable pollution rights would allow firms to move into an area that is already as polluted as allowed by EPA standards
a. True b. False Indicate whether the statement is true or false
A person has an absolute advantage in producing a good if he can
a. produce it using fewer resources than another person b. produce it while sacrificing less than another person in terms of foregone output c. corner the market d. use other peoples' money to produce it e. work out some long term payment plan for financing the good
Variables X and Z in the table below are:
A. Positively related
B. Negatively related
C. Independent
D. Nonlinearly related