An initial deficiency in reserves of $20 and a required reserve ratio of .5 lead to a maximum demand deposit contraction of
A) $8.
B) $40.
C) $50.
D) $80.
B
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The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price
Indicate whether the statement is true or false
Which of the following goods will have the most elastic demand at any time?
A. Cigarettes B. Electricity C. Gasoline D. Water E. Jewelry
An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?
a. both the changes in information technology and unemployment insurance b. only the changes in information technology c. only the changes in unemployment insurance d. neither the changes in information technology nor the changes in unemployment insurance
An economy could produce above its potential GDP for a short period of time by
A. reducing the size of the labor force. B. increasing the price of final goods and services. C. adding extra shifts of work, such as overtime or night shifts. D. increasing the money supply.