Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve ratio is 9 percent. The bank has required reserves of
A) $910,000.
B) $90,000.
C) $900,000.
D) $1,000,000.
E) There is not enough information provided to answer this question.
C
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A country that must decrease production of one good in order to increase the production of another
A) must be using resources inefficiently. B) must be producing on its production possibilities frontier. C) must be producing beyond its production possibilities frontier. D) must have private ownership of property.
Increased production, but not increased inflation, will result in higher:
a. nominal GDP. b. money GDP. c. real GDP. d. current dollar GDP.
If rice is an inferior good,
a. the income elasticity of demand for rice will be positive. b. an increase in income will cause the demand curve for rice to shift to the left. c. an increase in income will cause consumers to buy more rice at the current market price. d. a reduction in income would not affect the demand for rice, but it would increase the quantity demanded.
Suppose that the market for labor is initially in equilibrium. If the firm employs labor-augmenting technology, the equilibrium wage
a. and the equilibrium quantity of labor will rise. b. and the equilibrium quantity of labor will fall. c. will rise, and the equilibrium quantity of labor will fall. d. will fall, and the equilibrium quantity of labor will rise.