Suppose the Federal Reserve Banks sell $2 billion of government bonds to the public, which pays for them by drawing checks. As a result, commercial bank reserves will:
A. increase by $10 billion.
B. remain unchanged.
C. decrease by $2 billion.
D. increase by $2 billion.
C. decrease by $2 billion.
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If the marginal revenue product of an input is greater than its price, the
A. firm should decrease its use of the input to bring the two values into equality. B. firm should raise the price of the product. C. firm should increase the use of the input to bring the two values into equality. D. firm should search for another input to use in its production.
Which of the following paired concepts are equivalent to each other?
a) increasing returns; diseconomies of scale b) increasing returns; increasing costs c) increasing returns; decreasing costs d) increasing costs; economies of scale e) constant costs; economies of scale
Most economists agree that a large federal budget deficit has what type of effect on the economy?
Suppose that you and your four siblings are given an opportunity to purchase a video rental store. Each of you would put up $50,000 . The revenue from the store is expected to remain $350,000 per year for the next several years
The costs (not including the opportunity costs of your investment) of operating the store are expected to remain steady at $320,000 for the next several years. The current market rate of interest is 5 percent per year. Should you go in on this deal? Explain.