If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:
a. $100,000.
b. $80,000.
c. $300,000.
d. $20,000.
e. $200,000.
e
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An increase in the marginal propensity to import will
A) raise imports and raise equilibrium income. B) lower imports and raise equilibrium income. C) lower the multiplier and reduce equilibrium income. D) raise the multiplier and reduce equilibrium income.
In the IO perspective it is important to enter an industry with
a. High supplier power b. Low threat from substitutes c. Low levels of rivalry between firms d. Only B & C
The Keynesian view is that the aggregate supply curve is vertical
a. True b. False Indicate whether the statement is true or false
Labor unions in the United States
a. tend to be more outspoken politically than those in Europe. b. have experienced steady declines in membership since the 1950s. c. tend to be more powerful in deregulated industries (for example, airlines) than in regulated industries. d. universally support socialist principles.