If the desired reserve ratio decreases, then
A) banks are able to make more loans.
B) banks' desired reserves decrease and their excess reserves do not change.
C) banks' desired reserves increase and their excess reserves decrease.
D) banks are forced to buy fewer government securities.
E) bank customers become more willing to make deposits in banks.
A
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars
Among the rationales for state owned enterprises is
(a) existence of monopoly. (b) the need for capital formation. (c) desirability of national control over strategic sectors of the economy. (d) all of the above. (e) none of the above.
Suppose that at current consumption levels an individual's marginal utility of consuming an extra hot dog is 10 whereas the marginal utility of consuming an extra soft drink is 2 . Then the MRS (of soft drinks for hot dogs)—that is, the number of hot dogs the individual is willing to give up to get one more soft drink is
a. 5 b. 2 c. 1/2 d. 1/5
Full employment is the rate of employment that results when
a. all labor resources of an economy are employed. b. there is efficient use of the labor force, with allowance made for normal unemployment due to dynamic changes and the structural conditions of the economy. c. cyclical unemployment is between 4 and 5 percent of the labor force. d. everybody who wants a job can find one.