A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can given the reserve requirement
a. It has $80 in reserves and $9,920 in loans.
b. It has $800 in reserves and $9,200 in loans.
c. It has $1,250 in reserves and $8,750 in loans.
d. None of the above is correct.
b
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Product differentiation plays an important role in perfect competition
Indicate whether the statement is true or false
Transfer payments are income that is
a. earned but not received. b. received but not spent. c. spent but not earned. d. received but not earned.
Society gains from a patent if the product would not otherwise be developed.
Answer the following statement true (T) or false (F)
Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending. Such changes would make it more likely that
A) consumers would pay prices closer to the actual costs for routine medical care. B) employers would provide more generous medical coverage to their employees. C) insurance deductibles would decrease. D) the quantity of medical services demanded would increase.