Suppose Darrell has $4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A. $0
B. $4,000
C. $6,000
D. $12,000
Answer: D
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Most consumers in stores use marginal analysis to make their buying decisions
a. True b. False Indicate whether the statement is true or false
If market participants believe next year's corn crop is likely to be unusually large:
A. it will be impossible to find someone to take the long position in a futures contract. B. the current spot market price of corn is likely to be above the futures price of corn. C. the current spot market price of corn is likely to be below the futures price of corn. D. it would be impossible to find someone to take the short position in a futures contract.
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A. doing good things for people and asking nothing in return. B. deriving utility from the action of a stranger. C. responding to another's actions with a similar action. D. deriving utility from an action that will cause another's utility to increase.