A reserve requirement of 20 percent means a bank must have $1,000 of reserves if its checkable deposits are:
A. $100.
B. $1,000.
C. $5,000.
D. $12,000.
C. $5,000.
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Which of the following are true about functions in the duality picture:
A. Compensated demand functions are homogeneous of degree zero in prices. B. Uncompensated demand functions are homogeneous of degree zero. C. Expenditure functions are homogeneous of degree zero. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c). G. All of the above. H. None of the above.
A patent grants
A) a guarantee of quality to consumers. B) the right to practice a profession. C) an exclusive right to an inventor of a product. D) control over a unique source or supply of raw materials.
Global environmental externalities are caused when pollution created in one country does which of the following?
a. Affects people in other countries who also caused the pollution b. Does not affect people in other countries c. Affects people in other countries who did not cause the pollution d. Positively affects people in other countries
During a recession:
a. Government spending automatically rises and taxes automatically rise. b. Government spending automatically falls and taxes automatically rise. c. Government spending rises automatically and taxes fall automatically. d. Government spending and taxes do not tend to change. e. None of the above.