If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account, _____
a. the money supply will not increase as much as it would had borrowers deposited all of the money
b. the money supply will remain unchanged
c. the money supply will decrease as much as it would had borrowers deposited all the money
d. the banking system will collapse
e. the economy will experience a recession
a
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The Skinned Knee Corporation can produce either 300 skateboards each week or 500 snowboards each week. What is their opportunity cost of producing 300 skateboards each week?
A) 300 skateboards B) 200 snowboards C) 500 snowboards D) 800 snowboards
If the quantity demanded for a good rises as income rises then the income elasticity of demand for this good is ________ than 0, and the good is ________ good
A) less; an inferior B) less; a normal C) greater; a normal D) greater; an inferior
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion. b. $130 billion. c. $1,873 billion. d. $1,227 billion. e. $967 billion.
The London Convention 1972 and the 1996 Protocol are aimed at the problem of
a. acid rain b. ozone depletion c. climate change d. dumping wastes at sea