A fractional reserve system means a commercial bank can lend out most of its deposits
a. true
b. false
Ans: a. true
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In the above figure, if a subsidy is granted that generates an efficient allocation of resources, then the output level will be
A) zero. B) 50 units per week. C) 150 units per week. D) 250 units per week.
The cross price elasticity of demand for a good is the percentage change in the quantity demanded in response to a given percentage change in
A) income. B) the price of that good. C) the price of another good. D) the quantity demanded of another good.
Which of the following is most likely produced in a monopolistically competitive market?
a. soybeans b. autos c. fast food d. oil e. local phone service
Under the gold standard system, 1 ounce of gold was worth $23 in the United States and worth 15.5 pounds in Great Britain. If the price of gold in Great Britain decreases by 10%, then:
A) the new exchange rate would show approximately 10% depreciation of the dollar. B) $1 = 1.64 pounds. C) 1 pound = $1.64. D) the new exchange rate would show approximately 10% depreciation of the dollar, and 1 pound would be equal to $1.64.