In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired (and current) reserve/deposit ratio is 15 percent. If commercial banks borrow 100 econs in reserves from the Central Bank through discount window lending, then the money supply in Macroland will ________, assuming that the public does not wish to change the amount of currency it holds.
A. increase to 3,133 econs
B. increase to 4,100 econs
C. decrease to 1,900 econs
D. increase to 4,667 econs
Answer: D
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A) area A + area B + area C B) area A C) area E + area F D) area B + area C + area D E) area A + area B + area C + area D
If a tax is imposed on a product, the buyer will always bear the entire burden of the tax
Indicate whether the statement is true or false
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a. Toyota builds an automobile plant in Kentucky. b. Faced with increasing enrollment, a private college builds a new School of Business building. c. Because of staggering losses, three insurance companies exit the industry. d. People's Bank hires two new tellers to meet increased demand for customer services. e. Shaveco enters the razor blade market with a new product, produced in the United States.
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a. Perfect competition. b. Monopsony. c. Oligopoly. d. Monopoly.