If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000 . and checkable deposit liabilities of $400,000 . what is the maximum amount of money this bank could create (add to the money supply)?
a. $420,000 b. $100,000.
c. $80,000 d. $2,100,000.
a
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What is the nominal value of money?
A) its actual face value B) what can be purchased with the money C) discounts taken by multiple purchases D) savings by shopping on specific days of the week
Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope. b. have a negative slope. c. be perfectly horizontal. d. be perfectly vertical.
Which of the following is an example of perfect competition?
A.) One large firm supplies the entire product to the market. B.) Two firms supply the entire market and compete with each other for customers. C.) Many small firms all produce the same good. D.) Many firms supply similar products, but each has significant brand loyalty.
Tax loopholes increase the progressivity of the federal income tax.
Answer the following statement true (T) or false (F)