The major assets on a bank's balance sheet are its
A) checking and savings account deposits.
B) loans, and checking and savings account deposits.
C) reserves, loans, and checking account deposits.
D) reserves, loans, and holdings of securities.
E) reserves, checking and savings account deposits.
D
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When aggregate planned expenditure exceeds real GDP, there are unplanned ________ in inventories, and firms ________ production, so that real GDP ________
A) increases; increase; increases B) increases; decrease; decreases C) decreases; decrease; decreases D) decreases; decrease; increases E) decreases; increase; increases
Compare and contrast the classical and Keynesian schools of thought for the following economic issues. (a) The flexibility of wages and prices. (b) The importance of macroeconomic policies
What will be an ideal response?
A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250 b. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250 c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250 d. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250
Keynesian economists believe that the government should do what during a downturn in the economy?
a. Increase government spending and decrease taxes b. Increase government spending and increase taxes c. Decrease government spending and decrease taxes d. Decrease government spending and increase taxes