In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $200 in government bonds.
B) sold $500 in government bonds.
C) purchased $200 in government bonds.
D) purchased $500 in government bonds.
C
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As shown in the above table, Sam enjoys sailing and skiing equally well. Which of the following is TRUE?
A) Sam will not consume the same number of hours of sailing and skiing if the price per hour of sailing is more than that of skiing. B) If the prices per hour of sailing and skiing are the same, Sam will not spend the same number of hours at each activity. C) The marginal utility of the 3rd hour of either sailing or skiing is 120. D) None of the above is true.
If all producers in a market are cartel members, then the demand curve facing the cartel is
A) the market demand curve. B) horizontal. C) identical to the demand curve in the dominant firm model. D) identical to the monopolist's demand curve.
Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in: a. the exchange rate
b. the unemployment rate. c. fiscal spending. d. consumer demand. e. the price level.
With respect to consuming food and shelter, two consumers face the same prices and both claim to be in equilibrium. We therefore know that
A) they both have the same marginal utility for food. B) they both have the same marginal utility for shelter. C) they both have the same MRS of food for shelter. D) All of the above.