The Required Reserve Ratio
If banks are required to hold a higher percentage of their deposits in reserve, then they will have fewer funds to loan out. Thus, fewer loans will be made and the money supply will contract (or at least grow more slowly). The opposite happens when the reserve ratio is decreased.
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The working-age population can be divided into two groups
A) people in the labor force and people looking for work. B) people in the labor force and people with a job. C) people looking for work and those in the armed forces. D) people in the labor force and people who are not in the labor force.
Refer to Figure 9-3. What is the value of domestic producer surplus without a quota?
A) $5 million B) $15.75 million C) $38.5 million D) $53.5 million
In a system of impersonal exchange,
a. bureaucratic ties on the production side are critical b. the economy benefits from specialization and modern technology c. inside connections on the consumption side are necessary d. successful institutional evolution makes no difference e. there is very little division of labor
An expansionary monetary policy will
a. increase imports. b. decrease exports. c. increase a current account deficit. d. decrease a capital account surplus.