If the required reserve ratio (RRR) is 10 percent and the Fed sells a $5,000 bond to an individual who pays for it with a check, the money supply will
a. not change
b. decrease by $4,500
c. increase by $4,500
d. decrease by $5,000
e. increase by $5,000
D
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The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the firms' surplus?
A) area A B) area B C) area C D) area D E) area E
Moral hazard occurs when one side of an economic relationship:
A. takes costly actions that the other side of the relationship cannot observe. B. takes actions that is contrary to the religious beliefs of the other side of the economic relationship. C. takes actions that the other side of the relationship enjoys doing. D. takes actions that the other side of the relationship cannot force them to do.
If brokerage commissions on bond sales decrease, then, other things equal, the demand for bonds will ________ and the demand for real estate will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Leverage refers to a firm's
a. output to employment ratio. b. revenue to cost ratio. c. debt to equity ratio. d. common stock to preferred stock ratio.