Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan all of their excess reserves, the real-world deposit multiplier is
A) less than 5.
B) equal to 5.
C) greater than 5.
D) equal to 20.
Answer: A
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In the context of the environment, the type of transactions costs that includes sampling the emissions of many companies to determine which company or companies are emitting pollution are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
In the above figure, the opportunity cost of moving from point D to point C is
A) 20 guitars. B) 50 ukuleles. C) 55 guitars. D) 25 ukuleles.
Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run?
a. Both will sell their products at a price equal to average total cost, but only the price taker will produce at minimum average total cost. b. Both will sell their products at a price equal to average total cost, but only the competitive price searcher will produce at minimum average total cost. c. Only the price taker will sell its product at a price equal to average total cost. d. Only the competitive price searcher will sell its product at a price equal to average total cost.
An increase in the minimum wage
a. reduces structural unemployment. b. reduces frictional unemployment, c. increases structural unemployment. d. increases frictional unemployment.