If the reserve ratio is 20 percent, how much money can be created from $100 of reserves? Show your work
(1/.20) $100 = $500.
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If the Federal Reserve wants to increase the money supply, it should:
A. increase reserve requirements. B. increase the interest that it pays on reserves. C. increase the discount rate. D. conduct open-market purchases.
Suppose new oil reserves are discovered that were not previously known. What happens to the user cost of oil?
A) Decreases B) Increases C) Remains the same D) May increase or decrease, depending on the discount rate
A perfectly inelastic demand is one in which the:
A. demand curve is perfectly vertical. B. demand curve is perfectly horizontal. C. measured elasticity is exactly 1. D. response to a change in price is immediate.
The total labor force equals: a. the number of officially employed persons
b. the number of officially unemployed persons. c. the number of officially employed plus unemployed persons. d. the number of persons aged sixteen and over in the population.