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Question
For the money expansion process to produce the maximum potential multiplier effect,
A) all loans of a given bank have to be deposited in that bank.
B) the required reserve ratio has to be 100 percent.
C) the Fed has to sell government bonds to back up the loans.
D) all loans from banks have to be redeposited throughout the banking system.
Answer
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Related questions
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The purpose of an effluent fee imposed on a firm isA) to increase output of its product by increasing the resources allocated to production.B) to increase output of its product by reducing the resources allocated to production. C) to reduce output by increasing production costs thereby reducing resources used. D) none of the above
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Refer to the above figure. At a price of $2 per gallon, there isA) a surplus of 20,000 gallons per month. B) a shortage of 40,000 gallons per month.C) a shortage of 80,000 gallons per month. D) a shortage of 60,000 gallons per month.
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How would you illustrate economic growth with the production possibilities curve? Explain.
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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Maximum Feasible Hourly Production Rate ChenHollyUnits of Good X5040Units of Good Y25100Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state thatA) the two nations should not specialize in the production of goods.B) specialization can lead to an increase in the production of all goods.C) specialization can lead to an increase in the consumption of all goods.D) neither country has a comparative advantage in the production of any good.
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Q:
Which of the following is NOT an example of investment in human capital?
A) A medical studentʹs internship
B) The purchase of a personal computer for playing games
C) A mechanic attends a training workshop on a new type of engine
D) Johnny learns how to read
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Economic growth can be pictured in a production possibilities curve diagram byA) shifting the production possibilities curve in. B) shifting the production possibilities curve out.C) making the production possibilities curve straighter.D) moving from a point inside the production possibilities curve to a point on the curve.
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The exchange rate for a foreign currency that is determined by supply and demand isA) a fixed exchange rate. B) a controlled exchange rate. C) a constrained exchange rate. D) a flexible exchange rate.
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Markets tend to underallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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Markets tend to overallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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The law that created the high level of tariffs in United States in the 1930s isA) the GATT Act.B) the World Trade Act.C) the Smoot-Hawley Act. D) the Tariffs Agreement Act.
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Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls.
B) Price controls may take the form of price ceilings or price floors.
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D) Rent controls are examples of price floors.
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Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
Q:
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Q:
Discuss the relationship between world trade and world Gross Domestic Product (GDP) since the early 1950s.
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.