Which of the following is true regarding the required reserve ratio?
A) The ratio determines the legally required amount of reserves a bank must hold.
B) The ratio determines the amount of excess reserves a bank must hold.
C) The ratio is only enforced against banks that are operating in a risky manner.
D) None of the above answers is correct.
A
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A person with a diminishing marginal utility of income
A) will be risk averse. B) will be risk neutral. C) will be risk loving. D) cannot decide without more information
The basic difference between the expenditure and income approaches to measuring GDP can be illustrated by transactions in the product and resource markets of the circular flow diagram
Indicate whether the statement is true or false
Fiona's hourly wage decreases from $10 to $8 . Which of the following describes a consequence of the decrease in Fiona's wage?
a. The opportunity cost of Fiona's leisure time has decreased. b. Fiona may choose to work more hours due to the decrease in her wage. c. Fiona may choose to work fewer hours due to the decrease in her wage. d. All of the above are correct.
If an increase in income leads to a decrease in the demand for ground beef, then ground beef is a(n):
A. complementary good. B. substitute good. C. inferior good. D. normal good.