If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of deposits would be (assume that citizens prefer to keep 10% of their money as cash)
A) 100/0.25 times 1.1 which is 440.
B) 100/0.35 which is approximately 286.
C) 100/0.35 times 1.1 which is approximately 314.
D) 100/0.10 which is 1000.
C
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If Sam decides to work, his
A) reservation wage is greater than his wage rate. B) reservation wage is less than his wage rate. C) value of marginal product is greater than his wage rate. D) value of marginal product equals his wage rate.
Which of the following statements is NOT TRUE?
A) AC = AFC + AVC B) C = F + VC C) AVC = wage/MPL D) AFC = AC - AVC
The symmetry-integration diagram shows a set of situations under which a nation should fix or float. There is a set of combinations of integration and symmetry beyond which the benefits of fixing outweigh the costs. This is shown as:
A) a positively sloped line from the origin, equidistant from both axes. B) a negatively sloped line, above which a nation should fix and below which a nation should float. C) a curved line that follows a random path through the space, coming close but never touching either axis. D) a curved line, the slope of which is at first negative, then increases at an increasing rate as the benefits of fixing increase exponentially
Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.
a. True
b. False
Indicate whether the statement is true or false