When the initial and only deposit in the banking system is $1,000 and the legal reserve requirement is 20 percent, what is the total money in the economy assuming banks loan out the maximum?
a. $800
b. $1,000
c. $1,250
d. $2,000
e. $5,000
E
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Which of the following statements about the percent of the population aged 25 and over completing high school is most accurate?
a. Between 1940 and 2000, the rate for blacks increased substantially while the rate for whites remained the same. b. Between 1940 and 1960, whites, blacks, and Hispanics experienced large decreases in completion rates, and experienced large increases after 1960. c. Between 1980 and 2000, the rate for Hispanics dropped significantly while the rates for whites and blacks increased. d. Between 1940 and 2000, the rate for whites increased about 3 times and the rate for blacks increased about 10 times.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company should have paid them
a. Per store opened b. A percentage of the profit earned per new store c. A fixed salary d. All of the above
When the free rider problem is present in a market the good:
A. will be oversupplied. B. will be under consumed. C. is rival in consumption. D. is not excludable.
The demand for factor inputs:
A. is generally constant across most factor markets. B. depends upon the markets for the goods that they are used to produce. C. is independent of how much they contribute to the value of the end product. D. is referred to as imputed demand.