Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0.
B) $2,000.
C) $3,000.
D) $5,000.
Answer: B
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The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?
What will be an ideal response?
Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude
a. the U.S. has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the U.S. has a absolute advantage in the production of wine. d. all of the above are conclusions are correct.
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) high; small relative to its liabilities. B) high; large relative to its liabilities. C) equal to its revenues; small relative to its liabilities. D) low; large relative to its liabilities
Which of the following products would be sold in a competitive market?
A) smartphones B) shoes C) Brent crude oil D) motorcycles