The Fed buys $100 million of government securities from Bank A. What is the effect on Bank A's balance sheet?
A) Securities decrease by $100 million and reserves increase by $100 million.
B) Securities decrease by $100 million and deposits decrease by $100 million.
C) Securities increase by $100 million and reserves decrease by $100 million.
D) Securities increase by $100 million and reserves increase by $100 million.
A
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Zipco's accounting profit is equal to its
a. total revenue minus opportunity costs b. total revenue plus opportunity costs c. total revenue minus imputed costs d. total revenue minus explicit costs e. total revenue minus explicit and implicit costs
If the graph shown is displaying a competitive labor market, the equilibrium wage in the market would be:
A. D. B. S. C. P*. D. Q*.
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100 B) L = 10 C) L = 5 D) Not enough information is given.
If marginal cost equals average variable cost, average variable cost will
A. increase. B. decrease. C. be minimized. D. be maximized.