If $300 of new reserves generates $800 of new money in the economy, then the reserve ratio is
a. 2.7 percent.
b. 12.5 percent.
c. 37.5 percent.
d. 40 percent.
c
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As part of the "wealth channel of monetary policy," a higher money supply __________ interest rates and thus __________ bond prices
A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers
In a market where all goods are perfect substitutes for each other,
a. the price elasticity of demand is 1.0 for all goods b. the market is perfectly competitive c. only one producer dominates d. only a few firms can operate e. brand loyalty is high
Which of the following is a principle concerning how people interact?
a. Markets are usually a good way to organize economic activity. b. Rational people think at the margin. c. People respond to incentives. d. All of the above are correct.
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
This game is an example of a:
A. game with multiple equilibria. B. credible promise. C. prisoner's dilemma. D. cartel.