Figure 4-4
Given the demand and supply conditions shown in , what will happen as the result of imposing a price ceiling of a?
a.
Demand for the product will decline.
b.
Supply will increase.
c.
There will be a shortage of the product.
d.
Over time, the quality of the product offered by suppliers will increase.
c
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Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 8%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) 0 B) $80,000 C) $920,000 D) $1,000,000 E) None of the above—it's the bank's own choice.
What is the formula you should use to determine a bank account's future value in one year?
A) Future value equals the present value multiplied by one plus the rate of interest in decimals. B) Future value equals the present value divided by one plus the rate of interest in decimals. C) Future value equals the present value plus the rate of interest. D) Future value equals the present value minus the rate of interest.
An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by one that is temporary?
A) The LM curve B) The IS curve C) The FE line D) The labor demand curve
When Scuba, Inc, lowered the price of a tank of compressed air by 20 percent, it sold 10 percent more tankfuls. The price elasticity for compressed air is
a. 2. b. 1/2. c. 1. d. 20.