If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to
a. $140 of new money.
b. $14,000 of new money.
c. $140,000 of new money.
d. None of the above is correct.
b
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When a firm has economic profits equal to zero
A) the firm is earning a normal rate of return on investment. B) the firm is not earning a normal rate of return on investment. C) the firm should shut down. D) the firm's accounting profits are also zero.
A . Why is the Fed interested in controlling both the interest rate and the size of the money supply? b. In the grand scheme of things, does it really matter which target option the Fed chooses? That is, is there a preferred target option?
Which of the following is true about the unions' supply curve of labor?
a. It shifts to the right because unions force firms to increase their employment. b. It is horizontal at the wage rate established by the union. c. Is the same as the marginal labor cost curve of the monopsonist. d. It is steeper than a nonunion supply curve of labor. e. It is downward sloping.
Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.
Answer the following statement true (T) or false (F)