The percentage of deposits that banks must hold in reserve is the
A) excess reserve ratio.
B) required reserve ratio.
C) total reserve ratio.
D) currency ratio.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Which of the following might make it inefficient for a farmer to continue growing crops on a particular piece of farmland?
A) A fall in crop prices B) A rise in the price developers are willing to pay for the land C) Erosion of the top soil D) Rezoning of the land by the county government E) Any of the above could do it.
When two countries specialize in the production of different goods and trade with each other, it is most likely each country will
A) export the goods in which it has a comparative advantage. B) export the goods in which it has an absolute advantage. C) import the goods in which it has a comparative advantage. D) import the goods in which it has an absolute advantage.
Which of the following is NOT a determinant of the price elasticity of demand?
A) the number of producers of the good B) the number of substitutes available to buyers C) the time consumers have to adjust to a price change D) expenditures on the item as a percentage of a consumer's total budget