Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5 percent, and excess reserves are $30 billion. What is the level of loans?
a. $270 billion
b. $5,400 billion
c. $6,000 billion
d. $5,100 billion
b
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An U.S. firm buys a new industrial sewing machine from a company located in France. Which of the following is TRUE?
I. U.S. net exports decrease. II. U.S. investment increases. A) only I B) only II C) both I and II D) neither I nor II
Nick considers macaroni and cheese to be an inferior good. As a result of macaroni and cheese being an inferior good, the
A) substitution effect must be larger in magnitude than the income effect so that less is purchased as the price falls. B) substitution effect must be smaller in magnitude than the income effect so that less is purchased as the price falls. C) income effect is positive, so that more is purchased as income increases. D) income effect is negative, so that less is purchased as income increases.
Refer to Figure 4-8. What is the value of the deadweight loss after the imposition of the ceiling?
A) $50,000 B) $125,000 C) $175,000 D) $260,000
What are the three important macroeconomic goals about which most economists, and society at large, agree?
a. economic growth, full employment, and low interest rates b. economic growth, full employment, and stable prices c. economic growth, zero unemployment, and falling prices d. economic growth, low unemployment, and a balanced budget e. economic growth, a balanced budget, and balanced international trade