Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
A) 0.67. B) 3.33. C) 6.67. D) 30.
D
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One effect of a shrinking economy is
A) an increase in the discount rate. B) a decrease in the discount rate. C) an increase in the federal funds rate. D) a decrease in the federal funds rate.
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $4 and the price of soybean feed is $5, what is the cost-minimizing feed combination producing P = 200?
a. C = 100 b. S = 40 c. C = 50, S = 20 d. C = 20, S = 50
Macroeconomics primarily examines: a. the behavior of individual households and firms
b. how prices are determined within individual markets. c. the output levels that maximize the profits of business firms. d. broad issues such as national output, employment and inflation.
If Social Marginal Cost (SMC) > Price (P) = Buyer's Private Marginal Benefit (MB) = Seller's Private Marginal Cost (MC) = Social Marginal Benefit (SMB), it implies that
A. firms are not maximizing profits. B. the product is oversupplied. C. there is an excess demand for the product. D. the socially optimal amount of the product is supplied.