If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the M1 money multiplier is
A) 2.5.
B) 1.7.
C) 7.3.
D) 0.73.
D
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How are the wage rate and employment determined in a competitive labor market?
What will be an ideal response?
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
When Social Security checks were first issued the nominal amount:
A. stayed the same for the life of the payments. B. regularly increased by 5 % every 3 months. C. regularly increased by 10 % every 3 years. D. stayed 3% above the poverty level for all recipients.
Restaurants will add high-price food items to the menu to lure diners to choose foods just below the high-price items. These items generally have the highest profit margin. This is an example of:
A. choice architecture. B. enlightened self-interest. C. price discrimination. D. irrational behavior.