From a new deposit in a checking account potential money creation is:
a. excess reserves times money multiplier
b. initial deposit times money multiplier.
c. actual reserves times required reserve ratio.
d. required reserves times money multiplier.
b
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Which of the following statements is generally true?
A) Rivalry is less the larger the number of firms in an industry. B) The smaller the number of firms in an industry, the greater the rivalry. C) The degree of rivalry in an industry is largely independent of the number of firms. D) The larger the number of firms in an industry, the greater the rivalry.
Demand-pull inflation can result when
A) policymakers set an unemployment target that is too high. B) a persistent budget deficit is financed by selling bonds to the public. C) a persistent budget deficit is financed by selling bonds to the central bank. D) workers get numerous wage increases.
The production possibilities table below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy.ProductsProduction Possibilities?ABCDECapital Goods01234Consumer Goods22181370Refer to the table above. What is the opportunity cost of producing the first three units of capital goods?
A. 22 units of consumer goods B. 7 units of consumer goods C. 6 units of consumer goods D. 15 units of consumer goods
Present value is
A) the value of a future amount expressed in today's dollars. B) the value of a dollar received a year from now, expressed in terms of its future value. C) the inverse of the interest rate. D) the nominal value instead of the real value of something.