If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of
A) $14,000.
B) $19,000.
C) $24,000.
D) $29,000.
A
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Which of the following would not violate the Sherman Antitrust Act if the rule of reason was used to interpret the act?
a. conspiring to monopolize b. formation of a trust company c. conspiring to restrain trade d. a single firm supplying all of a market with no close substitutes and some barriers to entry e. attempting to restrain trade with a foreign nation
Restaurants like to give away free salty peanuts while you wait for your food in order to encourage you to
A. Buy more beverages. B. buy more peanuts at the souvenir shop. C. Buy expensive salty food on the menu. D. None of the choices are correct.
Dairy Queen opens a branch in Estonia. The sales of the restaurant enter the U.S. GDP and the Estonian GNP.
Answer the following statement true (T) or false (F)