Individuals will increase their saving as
A. the interest rate falls.
B. business investment falls.
C. the interest rate increases.
D. the rate of inflation increases.
Answer: C
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Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to fall the same and monetary base to rise. b. Demand for real goods and services to rise and M2 money supply to rise. c. Demand for real goods and services to rise and M2 money multiplier to remain the same. d. Demand for real goods and services to remain the same and M2 money supply to remain the same.
What is the difference between economic profit and accounting profit?
a. Economic profit considers implicit and explicit costs; accounting profit considers only explicit costs. b. Accounting profit considers implicit and explicit costs; economic profit considers only implicit costs. c. Economic profits do not consider implicit costs; accounting profits do not consider explicit costs. d. Accounting profits consider production costs; economic profits consider administration costs.
When the required reserve ratio is 10% and the banks deposits are $50 million, the bank can make up to $45 million in loans
a. true b. false
Assume you pay a premium of $0.50/bu for a soybean call option with a strike price of $9.20/bu and that the current futures price is $8.90/bu. What is the option's current intrinsic value?
A. $0.50/bu B. $0.30/bu C. $0/bu D. $-0.50/bu