If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
a. 4.00.
b. 2.50.
c. 0.40.
d. 0.25.
a
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The players in a two-person game are choosing between Strategy X and Strategy Y. If the second player chooses Strategy X, the first player's best outcome is also to select X. If the second player chooses Strategy Y, the first player's best outcome is to select X. For the first player, Strategy X is called a
a. dominant strategy b. collusive strategy c. tit-for-tat strategy d. repeated-trial strategy e. tacit strategy
An excess supply of loanable funds occurs when: a. borrowers want to borrow fewer funds than savers want to supply. b. borrowers want to borrow more funds than savers want to supply. c. the real interest rate is lower than the equilibrium interest rate
d. the real interest rate is equal to the equilibrium interest rate.
When people heard that there was a shortage of specialty dolls, they wanted even more of them. Because of this effect the pressure on the price of these dolls increased. The price of the dolls remained the same however. Thus, the shortage of these dolls:
A. increased. B. may have increased or decreased. C. decreased. D. did not change.
Which is of the following statements is correct?
A. If demand increases, then price will decrease B. If demand decreases, then price will decrease C. If price increases, then demand will decrease D. If price decreases, then demand will decrease