The higher the required reserve ratio, _____
a. the larger the money multiplier
b. the smaller the money multiplier
c. the more the excess reserves after each round of the money-creation process
d. the more the money that can be lent in each round of the money-creation process
e. the lower the demand for cash by the non-banking public
b
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What would be an example of a government good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. B) Rhianna gets a haircut. C) Jake buys an iPhone. D) Donald Trump purchases furniture for his office. E) The local driver's license office purchases a new digital camera and printer.
Which of the following assigns widely-followed bond ratings?
A) Standard & Poor's Corporation B) Securities and Exchange Commission C) Federal Reserve D) IBM
The equation below gives the degree of economies of scope (SC):
SC = (C(Q1 ) + C(Q2 ) - C(Q1,Q2 )) / C(Q1,Q2 ) where C(Q1 ) is the cost of producing output Q1, C(Q2 ) is the cost of producing output Q2, and C(Q1,Q2 ) is the joint cost of producing both outputs. If SC is negative: A) there are neither economies nor diseconomies of scope. B) there are economies of scope. C) there are diseconomies of scope. D) there are both economies and diseconomies of scope.
If a local government gives out water filters to low-income families free of charge, the water filters are:
A. public goods. B. private goods. C. external goods. D. spillover goods.