Assume that a bank has $2,000 in total reserves and $10,000 in checkable deposits and the required reserve ratio on checkable deposits is 20%. This bank's excess reserves equal
A. $500.
B. $250.
C. $750.
D. zero.
D. zero.
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An industry in which its firms' cost structures do not vary with changes in production is referred to as a
A. price-taking industry. B. constant-cost industry. C. price-controlled industry. D. fixed-price industry.
Based on the data in Table 3.1
A) Jesse should specialize in both goods. B) Jesse should specialize in painting kites and trade for snowboards. C) Jesse should specialize in painting snowboards and trade for kites. D) April should specialize in both goods.
To arrive at a logical determination of a firm’s optimum output, economists assume that the firm seeks to
a. maximize output. b. minimize cost. c. maximize profit or minimize loss. d. maximize price.
The curve showing the short-run relationship between the ________ and the ________ is called the Phillips curve
A) unemployment rate; inflation rate B) exchange rate; real interest rate C) price level; real GDP D) nominal interest rate; real interest rate