If checkable deposits in Bank A total $620 million and the required reserve ratio is 9 percent, then required reserves at Bank A equal
A) $564.2 million.
B) $468 million.
C) $28.8 million.
D) $55.8 million.
E) $558 million.
D
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Classical macroeconomic theorists believed that the economy would recover on its own from an economic downturn because:
A. falling wages would lead prices to fall, which, in turn, would spur consumer spending. B. falling wages would lead consumers to spend less and save more. C. rising wages would lead prices to rise, which, in turn, would lead consumers to spend less. D. higher prices would lead wages to rise, which, in turn, would spur consumer spending.
If the stock market booms, then
a. aggregate demand increases, which the Fed could offset by increasing the money supply. b. aggregate supply increases, which the Fed could offset by increasing the money supply. c. aggregate demand increases, which the Fed could offset by decreasing the money supply. d. aggregate supply increases, which the Fed could offset by decreasing the money supply.
The major "success indicator" for business managers in command economies like the Soviet Union and China in the past was:
A. The quantity of output B. Product quality C. The amount of profits D. Worker morale
Refer to the above figure. Given the indifference map and budget constraint represented above, the consumer will maximize utility when she consumes at
A. point A. B. point B. C. point C. D. either points A or B.