The money supply will grow faster through deposit creation when the legal reserve requirement is
a. high and banks hold excess reserves
b. high and banks cannot find good customers to lend to
c. low and banks are able to lend out all of their excess reserves
d. low and banks are unable to loan out all of their excess reserves
e. high and banks are not able to loan out all of their excess reserves
C
Economics
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Suppose that the demand for lava lamps is elastic, and the supply of lava lamps is inelastic. A tax of $2 per lamp levied on lava lamps will increase the price paid by buyers of lava lamps by
A. $1 B. less than $1 C. between $1 and $2. D. $2
Economics
"Because of rent seeking, a monopoly may end up earning a normal profit." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
Economics