In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, deposits in the banking system can potentially increase by
A) $10.
B) $100.
C) $100 times the reciprocal of the required reserve ratio.
D) $100 times the required reserve ratio.
C
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The chief economic cost of unemployment is
a. the value of the leisure that is lost when people are unemployed b. the cost to employed citizens of paying unemployment benefits c. money spent on the job search process d. the chance that the unemployed might turn to crime to support themselves e. the value of output that could have been produced, but is not
An ordered pair is
a. the process of checking calculations twice before placing them on a graph. b. two numbers that can be represented by a single point on a graph. c. two numbers that are represented by two points on a graph. d. two points on a graph that are of equal distance from the origin.