If the currency drain ratio is 30 percent and the desired reserve ratio is 10 percent, the money multiplier is
A) 0.80.
B) 1.25.
C) 3.25.
D) 5.00.
E) 10.0.
C
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If the minimum points on all the possible short-run average total cost curves become successively lower as quantity of output increases, then
a. the firm should try to produce less output b. total fixed costs are constant along the LRATC curve c. there are economies of scale d. the firm is probably having significant management problems e. when output is doubled, total costs are doubled
Which of the following undermines the effectiveness of a barrier to entry?
a. the existence of patents in the industry b. high fixed cost c. no access to resources d. product differentiation e. rapid technological innovation
Residual analysis refers to the process of:
A. examining individual observations to see whether the actual value of a dependent variable differs from the predicted value. B. calculating the squared sum of residuals to draw inferences for the consistency of estimates. C. transforming models with variables in level to logarithmic functions so as to understand the effect of percentage changes in the independent variable on the dependent variable. D. sampling and collection of data in such a way to minimize the squared sum of residuals.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. Suppose that Dawn initially proposed $5 million while Terry proposed $9 million. Given the distribution of voters' preferences, Terry can increase her chance of being elected by proposing:
A. a greater budget than $9 million. B. a smaller budget than $5 million. C. a smaller budget toward the median budget. D. None of these