If actual reserves in the banking system are $8,000, checkable deposits are $70,000, and the legal reserve ratio is 10 percent, then excess reserves are:
A. $2,000.
B. $500.
C. zero.
D. $1,000.
Answer: D
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In 2012, direct government purchases equaled ________ percent of expenditures of all levels of government
A) 71 B) 42 C) 26 D) 55
The short-run Phillips curve always intersects the long-run Phillips curve at: a. Zero inflation
b. At an accelerating inflation rate. c. The expected inflation rate. d. The same rate over time.
The number of U.S. made products demanded in Europe ________ as the dollar-per-euro exchange rate ________ , other things constant, so more euros will be supplied on the foreign exchange market to buy dollars
a. increases; increases b. does not change; decreases c. decreases; increases d. does not change; increases
Suppose that a $0.75-tax is placed on gasoline. Under what circumstances will gasoline sellers end up shouldering the full burden of the tax?
A. If supply is perfectly inelastic, and demand is downward-sloping B. If demand is perfectly inelastic, and supply is upward-sloping C. If supply is upward-sloping and demand is perfectly elastic D. The consumer and the seller always share the burden of the tax