If the reserve requirement for a bank is $200,000 for a deposit of $1 million, then the money multiplier is:

If U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest, then

A. pounds depreciate relative to dollars. B. pounds appreciate relative to dollars. C. Great Britain’s imports will fall. D. Great Britain’s exports will rise.

Advertising can be a signal of quality

a. only if consumers are irrationally attracted to products they see advertised. b. if advertising is freely available to all firms. c. if the benefit of attracting customers is greater for firms with better products. d. only if the content of the ads contains credible information about the products.