Suppose you found $3,000 hidden in your closet and deposited it in a demand deposit account at your bank. If the reserve requirement was 40 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $1,800; $7,500
b. $1,800; $5,400
c. $3,000; $7,500
d. $3,000; $3,000
a
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Purchasing power parity means that the expected exchange rate is such that the returns from investing in two nations are equal
Indicate whether the statement is true or false
Given that Sandy can produce 10 economics reports or make 2 sales calls and Tim can produce 2 economics reports or make 1 sales call, we can conclude that
A) Sandy should specialize in economics reports, and Tim should specialize in sales calls. B) Sandy should produce both economics reports and sales calls since she cannot possibly gain from trade with Tim. C) Tim should specialize in producing economics reports, and Sandy should specialize in producing sales calls. D) Tim should produce both economics reports and sales calls.
Exhibit 7-13 Price and cost per unit curves
?
In Exhibit 7-13, the firm's short-run supply curve is the marginal cost curve above point
A. A. B. B. C. C. D. D.
Suppose total planned expenditures equal $100 billion when the value of the price level is 100. If the price level drops to 90, total planned real expenditures will equal
A. less than $100 billion. B. more than $100 billion. C. $100 billion. D. None of these: Cannot be determined without additional information.