During recessions, banks typically choose to hold more excess reserves relative to their deposits. This action
a. increases the money multiplier and increases the money supply.
b. decreases the money multiplier and decreases the money supply.
c. does not change the money multiplier, but increases the money supply.
d. does not change the money multiplier, but decreases the money supply.
b
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
With a per-unit tariff of Pt?Pc, the total amount of tariff revenue collected on this product will be
A. Pa?Pt times y?w. B. Pt?Pc times y?w. C. Pt?Pc times z. D. Pa?Pc times x.
Assume the inverse demand function for a good can be written as: P = 30 - 2Q. Assuming P = $10, the resulting consumer surplus would be equal to:
A) $50. B) $100. C) $200. D) $225.
Which of the following will not shift the demand curve for movie tickets?
a. a change in the cost of babysitting services b. a change in the price of movie tickets c. a change in the quality of television programs d. a change in the income of movie-goers e. a change in the number of consumers
If average fixed cost and average variable cost are summed together, the result is: a. total revenue
b. total profit. c. total cost. d. average total cost.