Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.73 to 0.78
B) decrease from 0.73 to 0.61
C) increase from 1.54 to 1.67
D) decrease from 1.67 to 1.54
A
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The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours do students work?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) None of the above answers is correct.
Which of the following was not a cause of the Great Recession?
a. Deregulating nationally chartered banks but not state-chartered banks. b.Government incentives to increase home ownership. c. Government encouragement of creative home-buying strategies. d. Relaxation of bank underwriting standards. e. All of the above were causes of the Great Recession.
The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. The quota on MP3 players will cause domestic producers to
A. gain $150 million. B. gain $110 million. C. lose $120 million. D. lose $100 million.
Which of the following would call for inpayments to the United States?
A. Gold flows into the United States. B. U.S. firms sell insurance to Brazilian shippers. C. The United States sends foreign aid to developing countries. D. The United States imports German automobiles.