With a reserve ratio of 10%, the banking system can create ________ with each dollar of deposits.
A. $5
B. $10
C. $2
D. $1
Answer: B
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The important characteristic of normative statements is that they
A) explain what really exists. B) are based on somebody's values and cannot be tested. C) explain what normally happens in the real world. D) help guide us to what will normally occur if some economic variable changes its value. E) do not use the ceteris paribus assumption.
For a given level of the money wage, an increase in the price level will cause the
a. supply of labor to rise. b. quantity of labor demanded to rise. c. price of leisure to rise. d. quantity of labor demanded to rise. e. both b and d.
Which part of real GDP fluctuates most over the course of the business cycle?
a. consumption expenditures b. government expenditures c. investment expenditures d. net exports
What is the difference between a change in supply and a change in quantity supplied?
Please provide the best answer for the statement.