Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum change in the money supply that can be supported is:
A. $13 million.
B. $30 million.
C. $97 million.
D. $333.3 million.
Answer: D
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The Keynesian model is based on the idea that
A) both consumption and saving are directly related to disposable income. B) saving depends only on the interest rate. C) consumption is unrelated to the level of real Gross Domestic Product (GDP). D) both consumption and saving are unrelated to the level of real Gross Domestic Product (GDP).
Refer to the game between James and Theodore depicted in Figure 12.1. Which of the following is true?
A. James's dominant strategy is to choose Up.
B. James's dominant strategy is to choose Down.
C. Theodore's dominant strategy is to choose Left.
D. Theodore's dominant strategy is to choose Right.
The price level has doubled in 35 years. The approximate annual percentage rate of increase in the price level over this period has been:
A. 20 percent. B. 2 percent. C. 5 percent. D. 50 percent.
Other things being equal, if a firm's marginal cost curve shifts upward at all output levels:
A. the average total cost curve remains unchanged at all output levels. B. the average variable cost curve remains unchanged at all output levels. C. the average fixed cost curve remains unchanged at all output levels. D. All of these