The minimum amount of reserves a bank is required to hold is known as
A. Total reserves.
B. Required reserve ratio.
C. Excess reserves.
D. The money multiplier.
Answer: B
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According to the quantity theory of money, in the long run, an increase in the quantity of money results in an equal percentage increase in ________
A) the price level B) the growth rate of real GDP C) the inflation level D) the growth rate of potential GDP
What does the cross-price elasticity of demand measure? How is it calculated?
What will be an ideal response?
Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost?
A) $7,200 B) $6,480 C) $5,400 D) $3,960
Which of the following is true about classical economists? a. They argued that the sources of depressions and high unemployment lay within the market system. b. They advocated laissez-faire policies to promote economic growth
c. They believed the economy would naturally tend toward unemployment. d. They believed prices and wages were rigid. e. They encouraged government intervention in markets.