Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then it alone can increase the money supply by
a. $900
b. $910
c. $1,000
d. $9,000
e. $10,000
A
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A pay-as-you-go system
A. has current retirees being paid out of the taxes of current workers. B. has current retirees being paid out of the taxes of current workers and has a sufficient amount of money on hand currently to pay out all future obligations. C. has a sufficient amount of money on hand currently to pay out all future obligations. D. always requires a trust fund.
Answer the following statement(s) true (T) or false (F)
1. According to the textbook application, CD packaging is a negative production externality. 2. At a competitive equilibrium, M? = 0, but at an efficient equilibrium MEC = 0. 3. At an efficient equilibrium, MSB = MSC, which implies that M? = MEC. 4. Property rights are the set of valid claims to a good or resource that allow its use and the transfer of ownership through a sale. 5. According to the Coase Theorem, assignment of property rights will permit bargaining that leads to an efficient solution only in the absence of externalities.
What does the slope of a straight line equal? How is the slope of a curved line calculated at a point on the curve?
What will be an ideal response?
What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?
A. Creative destruction B. Innovation C. The substitution effect D. Backward-bending innovation