When the Fed increases the reserve requirement, it:
A. expands the money supply because banks have more available to lend.
B. contracts the money supply because banks have less available to lend.
C. contracts the money supply because banks have more available to lend.
D. expands the money supply because banks have less available to lend.
Answer: B
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Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. If you make 1,000 t-shirts, your average total cost is ________.
A. $1.03 B. $3 C. $10.30 D. $3.10
Currency includes
a. paper bills and coins. b. demand deposits. c. credit cards. d. Both (a) and (b) are correct.
Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much will be in the account when you retire?
A. $3,752 B. $46,794 C. $24,871 D. $12,985
In the above figure, how many bushels of corn are produced at point "a"?
A. 0 B. 2,500 C. 10,000 D. 1,000