Following a new deposit of $50 at a bank, drawn on funds previously held on deposit at another bank, when the reserve ratio is 10 percent, the maximum potential increase in the money supply will be
A) $0.
B) $50.
C) $400.
D) $500.
A)
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In the short run, total variable cost
A) includes the cost of capital. B) includes the cost of labor. C) includes both the cost of capital and of labor. D) does not change when production changes. E) is positive when output is zero.
"Price discrimination allows a monopoly to increase its economic profit by capturing part of the consumer surplus and turning it into economic profit
" Is the previous statement correct or incorrect? If the statement is correct, why is it important in understanding firms' behaviors? If it is incorrect, why is it incorrect?
If the government increases taxes, which of the following will occur in the short run?
a. An increase in GDP, an increase in the price level, an increase in money demand and an increase in the interest rate. b. An increase in GDP, an increase in the price level, a decrease in money demand and an increase in the interest rate. c. An increase in GDP, a decrease in the price level, an increase in money demand and an increase in the interest rate. d. A decrease in GDP, a decrease in the price level, a decrease in money demand and a decrease in the interest rate. e. A decrease in GDP, an increase in the price level, an increase in money demand and a decrease in the interest rate.
To maximize profits, a monopolist produces the quantity by which of the following?
a. Marginal revenue equals average total cost. b. Price equals marginal revenue. c. Marginal revenue equals marginal cost. d. Price equals marginal cost.