If the banking system has a required reserve ratio of 10 percent, the money multiplier is
A. 0.9.
B. 1.11.
C. 0.1.
D. 10.0.
Answer: D
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Which of the following best explains why international trade exists?
a. International boards of trade define standard practices to guarantee free exchange. b. Newer methods of transportation have enabled timely shipping of agricultural goods. c. The development of the Internet since 1990 has increased exchange among countries. d. Countries are willing to exchange goods and services they have for those they lack.
If the MPC = .80, and investment rises from $100 to $150, real GDP will increase by:
A. $50. B. $125. C. $200. D. $250.
When textbooks are produced, the idea for a new book typically comes from
A. the publisher. B. department chairs. C. faculty thinking they have a better idea. D. faculty needing a book for their class.
Which of the following occurs if the expected profit increases?
A) Investment demand increases and the demand for loanable funds curve shifts rightward. B) The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve. C) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve. D) The savings increases and the supply of loanable funds curve shifts rightward. E) Investment demand decreases and the demand for loanable funds curve shifts leftward.