The textbook asserts that banks create money themselves. How?
A) Banks have their own printing presses, which is permitted by the Fed.
B) Banks are allowed to reach well into their required reserves as long as they can demonstrate that it would be profitable to do so.
C) Banks, when lending out their excess reserves, unleash a process that can increase the money supply through the deposit expansion multiplier.
D) For all of the above reasons.
C
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Net exports of goods and services equal the
A) exports of goods and services divided by the imports of goods and services. B) exports of goods and services plus the imports of goods and services. C) exports of goods and services minus the imports of goods and services. D) imports of goods and services minus the exports of goods and services.
If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7, then the marginal revenue product
a. of the second worker is $98, regardless of the structure of the product market b. of the second worker is $98 if the firm is a price searcher in the product market c. of the second worker is $98 if the product market is perfectly competitive d. of the tenth worker is $98 if the product market is perfectly competitive e. of the tenth worker is $98 if the firm is a price searcher in the product market