What area on a supply and demand graph represents producer surplus?
What will be an ideal response?
Producer surplus is the area above the supply curve and below the market price.
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Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the excess reserve ratio to 200% causes the M1 money multiplier to ________, everything else held constant
. A) increase from 0.15 to 0.33 B) decrease from 0.73 to 0.61 C) increase from 0.54 to 0.67 D) decrease from 1.67 to 1.54
After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
a. increase in taxes. b. reduction in transfer payments. c. increase in government purchases. d. All of the above are correct.