If banks faced a 100 percent reserve requirement, a $10,000 reduction in banking reserves would decrease the money supply by:
a. $1,000,000.
b. $100,000

A necessary condition for exchange rate stability where the sum of the elasticity of import demand and the elasticity of export supply must be greater than one is known as

A) the Marshall Lerner condition. B) the elasticities rule. C) the elasticities approach. D) the exchange rate condition.

In the health insurance field, asymmetric information creates problems _____ insurance contracts are signed; moral hazard causes problems_____ insurance contracts are signed

a. Before; before b. Before; after c. After; after d. After; before