Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 20 percent, an initial deposit of $850 will lead to total deposits of:
A. $425.
B. $850.
C. $4,250.
D. $42,500.
Answer: C
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Market barriers imposed on national banks:
a. included both restrictions on mortgages and high capital requirements. b. allowed rural banks to charge higher rates. c. allowed national banks to price discriminate. d. All of the above are correct. e. Only a and b are correct.
Which of the following people would be considered employed in the Census Bureau's Household Survey?
a. A homemaker working 20 hours cleaning her house b. A person paid to work 2 hours per week cleaning houses c. A child shoveling neighbors' driveways for money d. A person volunteering full-time at a local hospital e. A laid-off carpenter looking for a job
Refer to Table 8.1. Assume the wage rate is $10 and the firm has $1,000 in unavoidable fixed cost. What is the marginal cost of the 83rd unit of output?
A. $0.50
B. $0.56
C. $1.00
D. $1.43
A period of time in which the overall pace of business activity is falling is known as
A. an expansion. B. deflation. C. inflation. D. a contraction.