Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 8 percent, then the bank can make a maximum loan of
A) $0.
B) $2 million.
C) $8 million.
D) $10 million.
Answer: B
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A vertical supply curve for fish represents a
a. surplus of fish b. shortage of fish c. market-day supply curve d. short-run supply curve for fish e. long-run supply curve for fish
The sequence of events following a contractionary monetary policy would be higher interest rates followed by dollar
A. depreciation, higher exports, and lower imports. B. depreciation, lower exports, and higher imports. C. appreciation, lower exports, and higher imports. D. appreciation, higher exports, and lower imports.
In which of these countries is labor union membership as a percentage of the labor force the lowest?
A. Sweden B. The United Kingdom C. France D. The United States
Which of the following will not cause the demand curve for labor to shift?
A. An increase in the wage rate. B. An increase in the price of the final product. C. An increase in the price of a substitute factor of production. D. A change in demand for the final product.