If reserves in the banking system increase by $100, then checkable deposits will increase by $2,000 in the simple model of deposit creation when the required reserve ratio is
A) 0.01.
B) 0.05.
C) 0.10.
D) 0.20.
B
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Refer to Figure 16-2. Suppose Plato Playhouse charges a single price of Pd for each performance. Which of the following statements is true?
A) The company is selling less than the profit-maximizing quantity in the non-student market and more than the profit-maximizing quantity in the student market. B) The company is selling less than the profit-maximizing quantity in both markets. C) The company is selling less than the profit-maximizing quantity in both markets but it is maximizing its revenue. D) The company is selling more than the profit-maximizing quantity in the non-student market and less than the profit-maximizing quantity in the student market.
Large increases in agricultural productivity were not the primary reasons for migrating to which area of the nation during the antebellum period?
a. Illinois and Wisconsin b. Indiana and Ohio c. The far west d. Texas and Mississippi
If the value of the marginal product of labor exceeds the wage, then the firm could
a. increase profit by hiring additional labor. b. increase profit by reducing the amount of labor hired. c. increase revenue by lowering output. d. reduce total cost by hiring additional workers.
Which of the following is not a cost imposed by inflation?
A) Inflation reduces the affordability of goods and services to the average consumer. B) The money that consumers and firms hold loses its purchasing power. C) Firms must pay for changing prices on products and printing new catalogs. D) Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation.