Bank A has checkable deposits of $100 million, vault cash equaling $1 million and deposits at the Fed equaling $14 million. If the required reserve rate is ten percent what is the maximum amount Bank A could lend?
A. $14 million
B. $85 million
C. $15 million
D. $5 million
Answer: D
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Which of the following is an example of a Federal Reserve operating target?
A) Federal funds rate B) Unemployment rate C) Non-financial debt D) M2
In the above table, if the marginal revenue product is $26, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 5; $18 B) 5; $16 C) 4; $16 D) 6; $30
To an economist, a decrease in supply means a: a. rightward shift of the supply curve
b. movement up along a supply curve. c. leftward shift of the supply curve. d. movement down along the supply curve.
Suppose the total cost of producing 50,000 telephones is $500,000 . Suppose also that at an output of 30,000 . the average total cost is $8 and the marginal cost is $6 . What is true about the minimum of the average total cost curve?
a. The minimum of the ATC is greater than $10. b. The minimum of the ATC is less than $8. c. The minimum of the ATC is between $8 and $10. d. The minimum of the ATC can be no bigger than $6. e. The minimum of the ATC corresponds to a quantity greater than 50,000.