If Bank Reserves Are 200,the Public Holds 400 in Currency,and

question 116

Multiple Choice

If bank reserves are 200,the public holds 400 in currency,and the desired reserve-deposit ratio is 25%,deposits are ________ and the money supply is ________.

• A) 200;600
• B) 400;800
• C) 600;1,000
• D) 800;1,200
• E) 2,400;2,800

---

Definitions:

Average Total Cost (ATC)

The total cost of production divided by the quantity produced, representing the cost on average of producing one unit of output.

Total Variable Costs (TVC)

Total Variable Costs represent the overall expenses that vary directly with the level of production output, such as raw materials and labor hours.

Output

The total amount of goods or services produced by a person, machine, or industry.

Profit-Maximizing Level

The specific output level at which a business achieves its maximum profit, determined through analysis of costs and revenues.