A US commercial bank can lend 100% of its total reserves
a. true
b. false
Answer: b. false
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________ will lead to a decrease in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in the expenditure on investment B) A decrease in the expenditure on investment C) An increase in exports D) A decrease in imports
If a large number of firms are competing, the market could be
A) perfect competition or monopolistic competition. B) perfect competition or monopoly. C) monopolistic competition or oligopoly. D) monopolistic competition or monopoly. E) oligopoly or monopoly.
Mary has $10 to spend each week on coffee, Qc and magazines, Qm. The price of a coffee is $1, and the price of a magazine is $2. Mary's budget equation is ________
A) Qm = 10 - Qc B) Qm + Qc = 20 C) $1 × Qc + $2 × Qm = $10 D) Qm = 10 - 2 × Qc
Using the information in Situation 20-1, if aggregate output equals $8,000, the unplanned inventory investment equals
A) -$100 B) $0 C) $100 D) $500