If the reserve ratio is 20 percent, then $100 of new reserves can generate
a. $60 of new money in the economy.
b. $250 of new money in the economy.
c. $500 of new money in the economy.
d. $2,000 of new money in the economy.
c
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If the marginal profit of the next unit is negative, the firm should produce more output in order to generate greater profit.
Answer the following statement true (T) or false (F)
The success of Walt Disney's animated film The Lion King in 1994 increased production of animated films, increasing the demand for animators much faster than the supply of animators was increasing
As a result, in the market for animators, the equilibrium wage fell and the equilibrium quantity increased. Indicate whether the statement is true or false
Rent controls are most often designed to protect the investment made by apartment building owners
a. True b. False Indicate whether the statement is true or false
When the government uses a command-and-control policy to solve an externality, it
a. is usually the most effective policy option available. b. creates policies that directly regulate behavior. c. usually involves taxing the consumption of a commodity. d. typically refers to the Coase theorem to structure the policy.