Suppose a bank has demand deposits of $100,000 and the legal reserve requirement is 20 percent. If the bank currently has $100,000 in reserves, it could expand the money supply by as much as
a. $100,000
b. $400,000
c. $0
d. $20,000
e. $80,000
E
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The broadest measure to adjust Nominal GDP for price changes is ________.
A. exchange rates B. the Consumer Price Index (CPI) C. the Producer Price Index (PPI) D. the GDP price index
Betty consumes only milkshakes and sandwiches and maximizes her total utility. Suppose that the prices of a milkshakes and sandwiches both double and at the same time Betty's income doubles
Betty buys ________ sandwiches and her marginal utility from sandwiches ________. A) more; increases B) fewer; decreases C) more; decreases D) the same number of; remains the same
The merger of firms in different unrelated industries is known as:
a. a horizontal merger. b. a conglomerate merger. c. a vertical merger. d. a hostile takeover.
Which of the following countries has lower total government tax revenue as a percentage of GDP than the United States?
a. Canada b. Germany c. Sweden d. Mexico