The central bank of Rudisia purchases government bonds by using the money that commercial banks keep as deposits with the central bank. It pays an interest of 2 percent on the deposits and charges the commercial banks about 2.5 percent per check for processing checks. It sends back the extra money to the government treasury. Therefore, it can be said that:
a. the central bank of the country is
financially self-supporting.
b. the central bank of the country acts as the treasurer of the government.
c. the central bank of the country acts as the lender of the last resort of the government.
d. the central bank of the country ensures that the deposits of customers are insured.
a
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According to the scenario above, in which of the following groups are all the people structurally unemployed?
A) Thorton B) Jung C) Thorton and Darrelo D) Darrelo and Thorton E) Rita, Armondo, and Chris
The more restrictions an airline puts on tickets, the ______.
a. more expensive they are b. cheaper they are c. more competition there is for them d. easier it is to sell them
Suppose you are deciding whether or not to increase production. You are currently making a profit. If you produce one more unit, your increase in cost will be $10, your average variable costs will increase to less than that, and your average fixed costs will decrease. Finally, your average revenue will increase to $10, but your increase in revenue will be $10. You should
A. increase production by exactly 1 unit. B. increase production by at least 1 unit. C. leave production unchanged because profit is maximized where you are. D. redo the math associated with decreasing production because that may result in greater profit.
Using an aggregate demand graph, illustrate the impact of an increase in the growth rate of U.S. GDP relative to the growth rate of foreign GDP
What will be an ideal response?