If a bank keeps some of its excess reserves, the money multiplier:
A. increases.
B. stays the same.
C. goes to zero.
D. decreases.
Answer: D
You might also like to view...
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $4,500 . Profits=$9,000 b. Bundle the goods at $6,000 . Profits=$12,000 c. Bundle the goods at $5,000 . Profits=$10,000 d. Bundle the goods at $9,500 . Profits=$19,000
Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
a. Producers will increase the production of fuel-efficient cars. b. The federal government will place a quota on the number of fuel-efficient cars for sale, thus "forcing" consumers to purchase the gas guzzling vehicles. c. the termination of research on the cost-effectiveness of alternative fuels to power automobiles. d. Producers will increase the production of gas guzzling vehicles.
Assume there are only two goods in the economy, apples and bananas. In 2018, 1,400 apples were sold at $1 each and 8,500 bananas at $0.60 each. In 2019, the price of apples rose to $2 and the quantity rose to 2,400; the price of bananas rose to $0.80 and the quantity sold rose to 9,000.
What will be an ideal response?
The problem of economic scarcity applies
A) only in countries with no markets to meet people's wants. B) only in underdeveloped countries, because there are no productive resources in these nations. C) only to nations with few resources. D) to the economies of all nations, regardless of their levels of development.