If there were a 10% reserve requirement, how much would the deposit multiplier be?
What will be an ideal response?
10
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A decrease in the real interest rate outside of the United States will ________ the demand for the dollar and ________ the demand for foreign financial assets
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If consumers elect to postpone consumption so they can have a more enjoyable future, the supply of loanable funds would increase and the market rate of interest would fall
a. True b. False
Find the cost effective allocation of abatement across the two sources that also satisfies the 40 percent aggregate abatement level. Support with calculations.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
If Harry only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that
What will be an ideal response?