If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of money would be (assume that citizens prefer to keep 10% of their money)
A) 100/0.25 which is 400.
B) (100 )(1.35 ) which is 540 0.25.
C) (100 )(1.1 ) which is approximately 314 0.35.
D) (100 )(1.35 ) which is approximately 386 0.35.
C
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A firm that can effectively price discriminate will charge a higher price to
A) buyers who belong to the largest market segment. B) buyers who are members of the smallest market segment. C) customers who have the more elastic demand for the product. D) customers who have the more inelastic demand for the product.
According to Porter's Five Competitive Forces Model, which kinds of products are most likely to limit the ability of firms in an industry to raise prices?
A) complementary products produced by different firms in the same industry B) similar products produced by similar industries in low-cost countries C) differentiated products that target a small subsegment of the industry D) substitutable products produced by firms in different industries
Which of the following tax systems would help reduce income inequality the most?
A) a consumption tax system B) a proportional tax system C) a progressive tax system D) a regressive tax system
Three possibilities have probabilities 0.5, 0.3 and 0.2 and values $10, $20, and $30 respectively. The expected value is:
a. $15 b. $16 c. $17 d. $18