If the required reserve ratio is 0.20, what is the maximum amount of money that can be created from a $5 million deposit in the banking system?
A. $25 million
B. $50 million
C. $5 million
D. $20 million
Answer: A
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Growth of real GDP per person is totally determined by the growth of average:
A. labor force participation and the share of income going to capital. B. labor force participation and the share of the population employed. C. labor productivity and the proportion of the population employed. D. labor productivity and the proportion of the population in the labor force.
What do you believe is one of the chief criticisms of the Coase Theorem that render it useless in real-world situations
What will be an ideal response?
A straight-line downward-sloping demand curve has a price elasticity of demand that:
A. decreases as price decreases. B. is unitary at all prices. C. is zero at all prices. D. increases as price decreases.
Which of the following creates difficulties in making comparisons of real GDP across nations?
A. Each nation has a different population. B. Nations produce different goods and services. C. Relative prices differ sharply across countries. D. Nations often have different languages.