If a $1,000 cash deposit is made in a bank where the reserve requirement is 10 percent, then the maximum total loans in the form of check able deposits that may be made as a result of that cash deposit is
a. $1,000.
b. $5,000.
c. $9,000.
d. $10,000.
c. $9,000.
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Since World War II, the likelihood that any single item in the typical consumption basket of a consumer in the U.S. originated outside of the U.S
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
Consider two barter economies: Duos and Varietas. Duos produces two different goods, whereas Varietas produces 80 different goods. Both countries have the same number of people. In which barter economy is it more likely that the means of payment and the units of account would be efficient? How many relative prices are there in Duos compared with Varietas? Which economy would benefit more from adopting money?
What will be an ideal response?
Productivity growth is a minor source of improvements in real wage rates and the standard of living.
Answer the following statement true (T) or false (F)
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4.00. The minimum possible average variable cost is $3.50. The market price of the product is $3.00. To maximize profits or minimize losses, the firm should:
A. Continue to produce 200 units B. Continue production, but produce less than 200 units C. Increase production to more than 200 units D. Shut down