If the reserve requirement is 10 percent and a monetary expansion increases excess reserves by $5 million, the total change in the money supply after all rounds of lending are completed is:
A. 5 million
B. 100 million
C. 50 million
Ans: C. 50 million
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The greater the number of buyers and sellers with access to securities markets, the
A) higher the true equilibrium price will be. B) higher the yields on securities will be. C) lower the yields on securities will be. D) closer securities prices will be to the true equilibrium price.
As the U.S. price level increases, expenditures by which of the following will remain unaffected?
A. Consumers B. Businesses C. Government D. The rest of the world
A unique characteristic of oligopolies is their
a. differentiated products b. profit-maximizing behavior c. advertising campaigns d. ability to overcome barriers to entry e. mutual interdependence
Outline the various actions the government sector could take to promote growth
What will be an ideal response?