The banking system can lend the sum of its excess reserves because
A. The money multiplier is less than 1.
B. Banks are required to keep only a fraction of deposits on reserve.
C. Required reserves are a leakage from the banking system.
D. Bank assets are greater than bank liabilities.
Answer: B
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In the sequential version of a game using the same players, the same strategies, and the same possible outcomes as the original game, the equilibrium
A) may be different than in the original game. B) must be different than in the original game. C) will be the same as in the original game. D) is the same as the cooperative version of the original game. E) is the same as the noncooperative version of the original game.
We think about the cost of supplying labor as the:
A. opportunity cost of the individual's time. B. input costs that go into producing a unit of labor. C. average wage in the labor market. D. the additional equipment and training that is required when hiring a person.
An organization that is structured along a set of autonomous divisions led by a corporate headquarters office is called
A) M-form. B) U-form. C) T-form. D) a matrix.
Suppose a Dell computer that sells for $2,000 in the U.S. is exported to the Netherlands. If the exchange rate is 2 Dutch guilders per U.S. dollar, then according to purchasing power parity theory, what would be the Dutch guilder price of the computer in the Netherlands?
a. 5000 guilders b. 1000 guilders c. 2000 guilders d. 4000 guilders