If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to
A) its excess reserves.
B) 10 times its excess reserves.
C) 10 percent of its excess reserves.
D) its total reserves.
A
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The supply curve of an exhaustible resource shifts up as the marginal cost of extracting the resource increases
a. True b. False Indicate whether the statement is true or false
Which of the following statements about monetary policy is true?
A. Unlike fiscal policy, there is no delay between the Fed's enacting a policy and the policy's effects. B. Monetary policy has an equal impact on short-term and long-term interest rates. C. The Fed's policies tend to take effect more quickly and with less political influence than fiscal policy. D. The Fed controls most interest rates directly by telling banks and other financial institutions what interest rate they must charge for common loans.
Jason gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $400 for unexpected expenditures. Which of the following statements is TRUE?
A. The transactions demand for money is $450, the precautionary demand is $400 and the asset demand is $900. B. The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150. C. The transactions demand for money is $1,350, the precautionary demand is $400 and the asset demand is $0. D. The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0.
Refer to Scenario 1.1 below to answer the question(s) that follow.SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers.Refer to Scenario 1.1. The statement, "the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers," is an example of
A. normative economics. B. Ockham's razor. C. positive economics. D. marginal economics.