If the reserve requirement is 10%, and a depositor withdraws $1,000 from a bank, the bank's excess reserves will change by:
a. -1,000
b. +1,000
c. -100
d. -900
e. +900
.D
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Suppose after the semester ends, you take a trip to a tropical island. Upon arriving at the island, you make a stop at one of the markets and notice that everyone is carrying around jars full of little turtles
You also notice the person in line in front of you just paid for a bottle of rum with 6 turtles. Someone else just bought a straw hat for two turtles. Thinking back to your economics class (as painful as that may be), you would conclude that A) turtle soup is a delicacy. B) turtles are valueless. C) this is a barter economy. D) those little turtles are serving as money.
In the forex, the demand for dollars will increase if:
A. foreigners wish to buy U.S. goods. B. foreigners wish to sell U.S. financial assets. C. interest rates are lower in the U.S. relative to interest rates abroad. D. interest rates are equal in the US and abroad.
The aggregate supply curve will shift to the left if
a. energy prices fall. b. technology and productivity increase in the economy. c. the capital stock of the economy increases. d. the money wage rate increases.
How do consumers react to a tax on an item with few or no substitutes?
a. They stop consuming the product. b. They consume a bit less. c. They consume considerably less. d. They consume a bit more.