Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000 . the money supply:
a. increases $100,000 b. increases $500,000.
c. increases $600,000 d. decreases $500,000.
b
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Consider the following three market baskets:
Food Clothing A 15 18 B 13 19 C 14 17 If baskets B and C are on the same indifference curve, and if preferences satisfy all four of the basic assumptions, then: A) A is preferred to C. B) A is preferred to B. C) Both A and B answer choices are correct. D) none of the above
The concept of ____________________is based on voluntary decisions made by producers.
Fill in the blank(s) with the appropriate word(s).
The marginal revenue that would be derived from production of the second unit would be
A. $30.
B. $27.
C. $24.
D. $21.
Refer to the below graph. Consider a situation where price increases from P3 to P4. In this price range, demand is relatively:
A. Inelastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A)
B. Elastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A)
C. Elastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G)
D. Inelastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G)