Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 20 percent. How many deposits can Bank A create?
A) zero, because Bank A has no excess reserves
B) $200
C) $800
D) $400
A
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At consumer equilibrium, the level of marginal utility per dollar spent is the same for all consumers
a. True b. False Indicate whether the statement is true or false
Which of the following resulted from the Smoot-Hawley trade bill of 1930?
A) The stock market began a steady recovery from the crash of October 1929. B) Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply. C) Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues. D) The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.
Figure 9-5
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In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is
A. 400,000. B. 6. C. 4. D. 4/5.
The Populists succeeded in using the federal government to limit subsidies granted to corporations
Indicate whether the statement is true or false