If a bank has $200 million in deposits, the required reserve rate is 10 percent and the bank has $23 million in reserves:
A. the bank is short of required reserves.
B. the bank has excess reserves of $21 million.
C. the bank has excess reserves of $3 million.
D. the bank has excess reserves of $13 million.
Answer: C
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Suppose two countries have identical growth rates of real GDP and the same initial value of per capita real GDP. We know, then, that
A) living standards may differ in the two countries because we don't know how income is distributed in the countries. B) economic well being is the same in both countries. C) living standards in the two countries are probably identical, or very close to each other. D) life expectancies are the same in both countries.
Monetary policy can influence interest rates, which in turn can change spending
a. True b. False Indicate whether the statement is true or false
Person A argues that government is unnecessary and often does more harm than good. Economist A disagrees. What does economist A --- who believes that there is a legitimate case that can be made for government --- most likely say to support his position?
A) Government almost always does more good than harm. B) Without government, life would be anarchy. C) There are some things that individuals want done that can't get done without government. D) There are better people going into government work than are going into the private sector. E) none of the above
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. At Q = 1,000 . the firm's profit amounts to
a. -$200. b. $1,000. c. $3,000. d. $4,000.