If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of
A) $11,000.
B) $21,000.
C) $31,000.
D) $41,000.
C
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The direction of the substitution effect is not influenced by whether the good is normal or inferior
a. True b. False Indicate whether the statement is true or false
Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.
A) unlimited resources; economic systems B) human interactions; limited resources C) opportunity costs; choices D) social behavior; scarcity
The return on human capital
A. cannot be related to the return on physical capital since human capital and physical capital are so different. B. is similar to the return on physical capital. C. tends to be much lower than the return on physical capital. D. tends to be much greater than the return on physical capital.
If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50. B. The market will be in equilibrium at a price of $2.00. C. There will be a shortage of coffee. D. Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.