Bell Bank has $2 million in deposits and $1 million in reserves, with a reserve requirement ratio of 12 percent. If the Fed lowers the reserve requirement ratio to 10 percent, Bell Bank’s new excess reserves could potentially expand the money supply by ______.
a. $400,000
b. $760,000
c. $40,000
d. $240,000
a. $400,000
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Consider the labor market below. 
In the absence of any government intervention, the equilibrium wage is ________ per hour, and the equilibrium employment level is ________ workers per hour.
A. $4; 200 B. $12; 200 C. $8; 400 D. $12; 600
If the government were to increase taxes, it would be enacting:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. contractionary monetary policy D. expansionary budgetary policy.
If an industry has a price leader, it is most likely to be a dominant firm
a. True b. False Indicate whether the statement is true or false
Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect
a. discrimination. b. differences in human capital. c. differences in signaling. d. chance.