Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50 percent, this will lead to a maximum increase of ________ in M1 throughout all banks
A) $0 B) $21,000 C) $42,000 D) $84,000
C
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If adding an initial 100 billion labor hours per year increases real GDP by $3 trillion, diminishing returns informs us that an additional 100 billion labor hours per year will increase real GDP by
A) exactly $3 trillion. B) less than $3 trillion. C) more than $3 trillion. D) either exactly $3 trillion or by less than $3 trillion, depending on whether the real wage rate remains constant or rises. E) some amount but there is not enough information to tell by how much.
What is the difference between equity instruments and debt instruments?
What will be an ideal response?
If successive units of a good are consumed, the marginal utility gained typically:
A. increases at the same rate for all people. B. increases at different rates for different people. C. decreases at the same rate for all people. D. decreases at different rates for different people.
Why is cable TV reception regarded as a club good?