If a bank keeps some of its excess reserves, the money multiplier:
A. increases.
B. stays the same.
C. goes to zero.
D. decreases.
Answer: D
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The table above gives the domestic demand and supply schedules for a good. Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff. How much will the government collect as tariff revenue?
A) $160 B) $360 C) $320 D) $240 E) $80
Changes in reserve requirements directly and immediately affect
A) the monetary base. B) banks' holdings of securities. C) the Fed's holdings of foreign exchange. D) the money multiplier.
Which of the following policies address the the problem posed by positive externalities?
A) a subsidy to the agent that generates the positive externality B) a tax on the agent that generates the positive externality C) limit the activity that generates the positive externality D) a subsidy to the agents that benefit from the positive externality
Which of the following is true about the indifference curve where one commodity (such as pollution) is "bad"?
A) It has a negative slope. B) It has a positive slope. C) It is horizontal. D) It is vertical.