Eileen inherits $20,000 from her uncle and deposits the money into an account at Silver Star Bank. Silver Star has a required reserve ratio of 10 percent, meaning it must keep ______ of Eileen’s deposit in reserve.
a. $10,000
b. $2,000
c. $8,000
d. $18,000
b. $2,000
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If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good
a. True b. False Indicate whether the statement is true or false
Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?
Suppose that the central bank unexpectedly increases the growth rate of the money supply. In the short run the effects of this are shown by
a. moving to the left along the short-run Phillips curve. b. moving to the right along the short-run Phillips curve. c. shifting the short-run Phillips curve to the right. d. shifting the short-run Phillips curve to the left.
If a 10% increase in price decreases the quantity demanded by 12%, the price elasticity of demand is 1.2.
Answer the following statement true (T) or false (F)