If the reserve ratio is 10 percent, the money multiplier is equal to 10
Indicate whether the statement is true or false
TRUE
You might also like to view...
A strikebreaker is
A) a temporary worker hired by a company to replace a union member who is striking. B) when the President imposes a cooling-off period. C) someone who engages in featherbedding. D) a secondary boycott.
Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Suppose the equilibrium is for a factory in Los Angeles
What would happen if the same factory were in the middle of Nevada? A) The marginal cost curve (1 ) would shift to (2 ) and there would be no difference in the level of abatement. B) The marginal cost curve (2 ) would shift to the left and there would be less abatement in Nevada. C) The marginal benefit curve (4 ) would shift to the left and there would be less abatement in Nevada. D) The marginal benefit curve (2 ) would shift to the right and there would be more abatement in Nevada.
Suppose beer producers in Munich became aware of the low price of one barrel of beer in the domestic market relative to that in the United States. What will be the impact of this price difference?
a. Beer production in Munich will decline. b. Price of beer in the domestic market will increase. c. Beer production in the U.S. will increase. d. Beer consumption in the domestic market will increase.
Free markets can
A. produce goods and services with maximum efficiency. B. permanently solve unemployment. C. completely protect the environment. D. All of these responses are correct.