A bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio?
A. 2 percent
B. 3 percent
C. 6 percent
D. 12 percent
Answer: C
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The result that, under certain circumstances, no government action is needed to control an externality because it can be eliminated by bargaining between the affected parties is called
A) a Nash Equilibrium. B) Coase Theorem. C) Bargaining Theorem. D) English Bargaining.
If Asian economies suffer a serious economic slump, U.S. net exports will
A. increase and AD will shift outward. B. increase and AD will shift inward. C. decrease and AD will shift inward. D. decrease and AD will shift outward.
According to this Application, in Peru, producing palm oil is very profitable but is a time consuming process. Producing coca paste, an ingredient in cocaine, is not as costly or as time consuming as the production of palm oil
To switch Peruvian farmers from producing an ingredient used for cocaine to producing the profitable and safe palm oil would require A) improvements in finance and the ability to borrow funds. B) informal ownership of property. C) governmental approval. D) cocaine being declared illegal in Peru.
A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces demand Q = 100 - P, implying that its marginal revenue is MR = 100 - 2Q. Its profit maximizing quantity is
a. 8 b. 46 c. 50 d. 92