Assume that the banking system has $200 billion in reserves. There are no excess reserves in the system. If the reserve requirement is decreased from 10 percent to 8 percent, what will happen to the level of excess reserves in the system?
a. There will be a deficiency of $40 billion in reserves.
b. There will be a deficiency of $20 billion in reserves.
c. There will be $20 billion in excess reserves.
d. There will be $40 billion in excess reserves.
d
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In the Solow model, if f(k) = 2k0.5, s = 0.3, n = 0.05, and d = 0.15, what is the value of k at equilibrium?
A) 1 B) 3 C) 6 D) 9
Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
a. Prices were used to allocate resources. b. Prices played the same role as in a market economy. c. Prices were used to ration final goods and services but not to allocate resources. d. None of these statements is descriptive.
Fiscal policy can:
A. have real effects on the economy in the short run. B. bring the economy to its long run equilibrium faster than it can correct itself. C. cause inflation. D. All of these are true.
When a firm relies on social media ads to reach potential customers, the firm is engaging in
A. mass marketing. B. false marketing. C. direct marketing. D. none of these.