If the reserve ratio is 20 percent, then $100 of new reserves can generate
a. $60 of new money in the economy.
b. $250 of new money in the economy.
c. $500 of new money in the economy.
d. $2,000 of new money in the economy.
c
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The two components of a consumption curve are induced consumption and
a. permanent consumption b. transitory consumption c. durable consumption d. autonomous consumption e. external consumption
The figure below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
Suppose the United States imposes a countervailing duty on the imports of steel at the rate of $25 per ton. What is the amount of revenue collected by the U.S. government by imposing this countervailing duty?
A. $3.75 billion B. $750 million C. $4.125 billion D. $375 million