The value of the money multiplier depends on
A) the interest rate offered on bonds currently being purchased by the Fed.
B) the ratio of total assets to total liabilities for the banking system as a whole.
C) the reserve ratio.
D) the interest rate offered on bonds currently being sold by the Fed.
C
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Demand in a perfectly competitive market is Q = 100 - P. Supply in that market is Q = P - 10. What is the market equilibrium price and quantity? Given that price and quantity, how much consumer surplus, producer surplus, and deadweight loss is there? If the government imposes a $40 price ceiling, what quantity will be produced and sold? Assuming that those who value the good the most actually get after the ceiling is imposed, how much consumer surplus, producer surplus, and dead-weight loss is there?
What will be an ideal response?
If a production process created pollution, then the social cost curve would be:
A. below the market supply curve. B. the same as the original market supply curve. C. above the market supply curve. D. zero.
An economy's production possibilities are most likely to expand if
A. Gross investment is greater than depreciation. B. Net investment is zero. C. Net investment is negative. D. Depreciation is greater than gross investment.
Markets
A) rely on voluntary exchanges of goods, services, or resources B) refer to situations where almost all exchanges take place involuntarily. C) are based on extensive price controls imposed by a ruling authority. D) promote quantity determination free from the forces of demand and supply.