If the banking system has a required reserve ratio of 25 percent, then the money multiplier is
A) 2. B) 4. C) 5. D) 10.
B
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Why is the nominal interest rate the opportunity cost of holding money?
What will be an ideal response?
The interactions of producers and consumers in individual markets are part of the study of
a. macroeconomics. b. monetary economics. c. normative economics. d. microeconomics.
If people took external costs like pollution into consideration, they would on net:
A. consume a socially non-optimal amount of the goods causing the externalities. B. not change their behavior to consume more or less of the goods causing externalities. C. consume more of the goods causing these externalities. D. consume less of the goods causing these externalities.
Enforceable private property risks
A. Make economic development more likely. B. Make economic development less likely. C. Guarantee that economic development will occur. D. Ultimately have title effect on economy E. Guarantee that economic development will not occur.