Suppose that all banks maintain a 100 percent reserve ratio. If an individual deposits $ 3,000 of currency in a bank,
A. the money supply is unaffected.
B. the money supply rises by more than $3,000.
C. the money supply rises by less than $3,000.
D. the money supply decreased by less than $3,000.
Answer: A
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According to the graph shown, the original world price is _______ and the amount of the tariff is _________.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. $100; $30
B. $100; $130
C. $175; $45
D. $215; $115
How can an incomplete contract prevent opportunism? Explain with an example
Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. Will there be pressure for the Canadian dollar to change in value against the U.S. dollar as a result of the leftward shift of the U.S. IS curve?
A) Yes, the value will appreciate. B) Yes, the value will depreciate. C) No, the value will not change in value. D) Yes, but that pressure will be offset.
The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is known as:
A. a prisoner's dilemma. B. the golden rule. C. the cartel solution. D. a tit-for-tat strategy.