With a reserve ratio of 0 percent, the maximum potential money multiplier is
A. 0.
B. 1.
C. 100.
D. infinitely large.
Answer: D
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Indicate whether the statement is true or false
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A. less than B. equal to C. sometimes greater and sometimes less than D. greater than
Under the cartel, the individual firm's economic profit is (assuming it obeys its quota) Figure 42.2
A. zero. B. the larger of the dashed-line boxes. C. the smaller of the dashed-line boxes. D. between the size of the two dashed-line boxes.
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