If the required reserve ratio is .25, demand deposits are $400 million, and total reserves are $150 million, then excess reserves are
A) $25 million.
B) $50 million.
C) $75 million.
D) $125 million.
B
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When there are externalities, economic efficiency can be achieved without government intervention
A) at no time. B) when the externality affects many people and property rights are not well defined. C) when the externality affects many people and property rights are well defined. D) when the externality affects only a few parties and property rights are not well defined. E) when the externality affects only a few parties and property rights are well defined.
If the marginal product of an input is negative, the total product must also be negative
a. True b. False
Which of the following will NOT shift an economy's production possibilities curve outward?
A. an increase in technology B. an improvement in the literacy rate C. a reduction in the unemployment rate D. an increase in the number of workers available
Explain why exchange rates are more volatile than is suggested by the relatively simply interest parity condition presented earlier in the course
What will be an ideal response?