Because the banking system operates using fractional reserves,
a. the money multiplier is greater than one
b. excess reserves are equal to zero
c. required reserves are equal to 100 percent
d. banks can loan out only their required reserves
e. the money multiplier must be equal to zero
A
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Suppose an economics forecaster discovers that on days when the sunspot count is high stock market on the following day is bullish, that is stock market prices edge upwards
In addition, he also observes that on days with a low sunspot count the following day the stock market tends to be bearish, that is stock market prices tend to fall. The forecaster then concludes that there is a positive relationship between the sunspot count and stock market prices and proceeds to base his investment decisions on this premise. What kind of an error has this forecaster made?
In economics, the entrepreneur is the person who
a. acts as the go-between among different manufacturers. b. puts together land, labor, and capital and tries to make a profit. c. is a shrewd business executive who works as a consultant to other businesses to show them more profitable methods of operation. d. is a visiting diplomat from France.
If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X. B) B has a comparative advantage in the production of good Y. C) the opportunity cost of domestic production of good Y for country A is lowered with trade. D) B is producing less of good Y than in the no-trade case.
Consider two countries, A and B. Country A has a more egalitarian distribution of incomes if
a. it has a lower Gini coefficient than B b. the Lorenz curve for B lies above the one for A c. the percentage of the population below the poverty line is higher in B d. its Lorenz curve intersects from above B's Lorenz curve e. its Lorenz curve intersects from below B's Lorenz curve