The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy?
a. 5
b. 1
c. 20
d. 10
c. 20
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Jeremiah spends all of his income on oranges and cookies, which are normal goods. If Jeremiah's income decreases, he will buy ________ oranges and ________ cookies
His marginal utility from oranges will ________ and his marginal utility from cookies will ________. A) fewer; fewer; decrease; increase B) more; more; decrease; decrease C) the same quantity of; fewer; remain constant; decrease D) fewer; fewer; increase; increase
If a multinational is controlling funds, it will expect a subsidiary to remit a ________ portion of their earnings if this subsidiary has the opportunity to reinvest its earnings profitably
A) significant B) substantial C) smaller D) larger
Money multiplier is the amount of money the banking system generates with each dollar of reserves.
Answer the following statement true (T) or false (F)
What are beliefs about what is right and wrong or good and bad called?
A) motivators B) rules C) cultures D) ethics E) laws