The reserve requirement ratio is equal to
A. legal required reserves times the deposit multiplier.
B. total checkable deposits times the deposit multiplier.
C. total checkable deposits times the excess reserve ratio.
D. legal required reserves divided by total checkable deposits.
D. legal required reserves divided by total checkable deposits.
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The per-worker production function is ________
A) upward-sloping B) downward-sloping C) vertical D) horizontal
When banks create money, they
a. increase wealth at a pace equal to the rate of money creation b. destroy wealth at a pace equal to the rate of money creation c. increase wealth at a rate exceeding the rate of money creation d. increase wealth at a rate less than the rate of money creation e. do not create wealth
The total cost curve generally has
a. slope values which first decrease and then increase rapidly. b. slope values which first increase rapidly and then decrease. c. increasing slope values. d. decreasing slope values.
If there are sticky wages, and the price level is greater than what was expected, then
a. the quantity of aggregate goods and services supplied falls, which is shown by a shift of the short-run aggregate supply curve to the left. b. the quantity of aggregate goods and services supplied falls, as shown by a movement to the left along the short-run aggregate supply curve. c. the quantity of aggregate goods and services supplied rises, as shown by a shift of the short-run aggregate supply curve to the right. d. the quantity of aggregate goods and services supplied rises, as shown by a movement to the right along the short-run aggregate supply curve.