If the reserve ratio was 100 percent, then:
A. no lending would occur using deposits.
B. maximum lending would occur.
C. banks would create money in the economy.
D. banks would lend all of their deposits.
A. no lending would occur using deposits.
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Regression analysis splits people into groups, with each group containing identical people who
A) have different qualifications. B) do different work. C) are all of the same gender. D) None of the above are correct.
Which of the following will lower the money multiplier?
a. An increase in the currency/checkable deposit ratio b. A decrease in the excess reserve/checkable deposit ratio c. A decrease in the required reserve/checkable deposit ratio d. Either a or b e. All of the above
A cartel price will be established at the quantity where
A) total cost equals the industry total revenue. B) average cost equals the industry revenue. C) the sum of the members' marginal costs equals industry marginal revenue. D) marginal cost equals industry price.
Think of the firms and industries that are familiar to you—how many firms in the industry, what their cost structures may look like—and decide which among them is least likely to be a natural monopoly
a. a professional football franchise in Toledo, Ohio b. a pharmaceutical firm that produces a life-saving drug after 10 years of research investment c. a public utilities firm, such as an electric power company d. a high school in a small rural Kentucky town e. an alternative rock band