If there is no one who is interested in borrowing from a bank,
a. the bank's excess reserves will be zero
b. there will be no process of money creation
c. the full money multiplier potential will be reached
d. the legal reserve requirement must be equal to zero
e. the legal reserve requirement must be equal to 100 percent
B
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The rightward shift of the RS curve will lead to a ________ in the real interest rate, ________ in investment, and ________ in aggregate demand
A) fall; an increase; a decrease B) rise; an increase; an increase C) rise; a decrease; a decrease D) fall; an increase; an increase E) rise; an increase; a decrease
At long-run macroeconomic equilibrium, ________
A) an inflationary gap exists B) real GDP equals potential GDP C) a recessionary gap exists D) real GDP is less than potential GDP but is as close as it is possible to be
Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. For Kelly, what is the total utility received from consuming 5 magazines?
A) 5 B) 20 C) 25 D) 255
Which of the following is a difference between microeconomics and macroeconomics?
a. Microeconomics focuses on the actions of particular actors within the economy, while macroeconomics looks at the economy as a whole. b. Microeconomics focuses on the division of labor, while macroeconomics focuses on the division of capital. c. Microeconomics focuses on the development of small and medium enterprises, while macroeconomics focuses on the development of large business houses. d. Microeconomics focuses on the development of the nation, while macroeconomics focuses on the economic wellbeing of each household in an economy.