If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used to fatten cattle would cause
a. the demand for beef cattle to increase, driving the price of beef upward
b. the supply of beef cattle to decline, driving the price of beef upward in the long run
c. the supply of beef to increase, placing downward pressure on the price of beef in the long run
d. both supply and demand to fall, leaving the price of beef virtually unchanged
e. the supply of beef to increase, driving the price of beef down and increasing demand
B
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A bank has checkable deposits of $1,000,000, loans of $600,000, and government securities of $400,000. If the required reserve ratio is 5 percent, the amount of required reserves is
A) $100,000. B) $30,000. C) $50,000. D) $80,000. E) $20,000.
Refer to the figure above. What is the producer surplus when Lithasia opens to free trade?
A) $2 B) $5 C) $20 D) $21
Explain and demonstrate graphically how targeting the federal funds rate can result in fluctuations in nonborrowed reserves
What will be an ideal response?
In analyzing the gains and losses from international trade, to say that Moldova is a small country is to say that
a. Moldova can only import goods; it cannot export goods. b. Moldova's choice of which goods to export and which goods to import is not based on the principle of comparative advantage. c. only the domestic price of a good is relevant for Moldova; the world price of a good is irrelevant. d. Moldova is a price taker.