Which of the following is likely to shift the credit demand curve of an automobile manufacturer to the right, assuming all else equal?
A) An increase in the real interest rate
B) A plan to increase production and expand to newer markets
C) A plan to decrease production and exit from existing markets
D) A decrease in the real interest rate
B
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Society can increase its output and income by increasing its
A. resources and/or the productivity of the resources. B. private and public sectors of the economy. C. spending and taxes. D. markets and prices.
Larger firms will often have lower minimum per-unit costs than smaller firms because
a. employee shirking is less of a problem. b. large-scale output allows greater specialization for both labor and machines in the production process. c. mass production techniques, with high setup and development costs, are appropriate only when a small output is planned. d. all of the above are correct.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = (M)2. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you would pay security to check in your bike?
What will be an ideal response?
The amount of reserves that a commercial bank is required to hold is equal to:
A. the amount of its checkable deposits. B. the sum of its checkable deposits and time deposits. C. its checkable deposits multiplied by the reserve requirement. D. its checkable deposits divided by its total assets.