If your bank receives a demand deposit of $20,000 and the banking system makes the maximum possible loans, which is $60,000 . then the potential money multiplier must be
a. 2
b. 2.5
c. 3
d. 3.5
e. 4
E
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In a PPF graph of goods X and Y, points that lie beyond (to the right of) the PPF represent combinations of the two goods that are currently unattainable
Indicate whether the statement is true or false
In this graph of a firm’s supply and demand for labor, at what point are profits of labor maximized?
a. before MRP reaches W*
b before q* reaches W*
c. when there are q* workers
d. when quantity is highest
The existence of long term leases agreements in rental markets:
A. harms landlords and benefits tenants by preventing landlords from raising the rent each month. B. solves a commitment problem that is inherent in markets with imperfect information. C. creates an informational advantage for landlords. D. benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.
Restaurants like to give away free salty peanuts while you wait for your food in order to encourage you to
A. Buy more beverages. B. buy more peanuts at the souvenir shop. C. Buy expensive salty food on the menu. D. None of the choices are correct.