Assuming that banks have loaned all excess reserves, then an increase in checking account balances brought about by an increase in deposits is equal to

A) (the initial deposit) × (the reserve ratio). B) (total reserves) × ( the reserve ratio).
C) (the initial deposit) × (1 / reserve ratio). D) (total reserves) × (1 / reserve ratio).


C

Economics

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The price of one good in relation to the price of another good is called:

A) absolute prices B) exchange rate C) relative prices D) none of the above

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It is common in most towns that major department stores are located next to each other. Provide an intuitive explanation of this common finding.

What will be an ideal response?

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If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of

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Economics