If the reserve ratio is raised, the money multiplier
A. stays the same.
B. is doubled.
C. is increased.
D. is lowered.
Answer: D
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Use the following graph to answer the next question.
If the equilibrium interest rate is 4%, the supply of money must be
A. $100 billion. B. $150 billion. C. $200 billion. D. $250 billion.
In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. ________ advantage in making pizzas
A) Andy has an absolute B) Andy has a comparative C) Chris has a comparative D) None of the above answers is correct.
Selling the same product under different brand names allows a firm to price discriminate as long as
A) customers know the products are identical. B) customers do not know the products are identical. C) the products really are not the same. D) the firm lets customers know that the products are identical.
With regards to an investment project, which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual. B) A risk-neutral individual is more likely to invest than a risk-loving individual. C) A risk-neutral individual is less likely to invest than a risk-averse individual. D) Not enough information is given.