In which of the following assets are commercial banks in the United States NOT allowed to invest checkable deposits?
A) home mortgages
B) corporate bonds
C) municipal bonds
D) U.S. Treasury bonds
B
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Suppose a person cashes his payroll check and holds all the funds in the form of currency. Everything else held constant, total reserves in the banking system ________ and the monetary base ________
A) remain unchanged; increases B) decrease; increases C) decrease; remains unchanged D) decrease; decreases
Joe's Organic Cereal Company produces granola breakfast cereal under a fixed proportion production system in which 22 ounces of cereal are packaged in each cardboard box
However, the plant production manager decides to reduce the amount of cereal per box to 20.5 ounces at the start of the next year. For the isoquant map, cereal is plotted in the vertical axis, and boxes are on the horizontal axis. What happens to the curves in the isoquant map as a result of this change? A) Shift upward B) Shift downward C) Shift rightward D) Shift leftward
Monopolistically competitive markets feature heterogeneous products.
Answer the following statement true (T) or false (F)
What is the price of investment? How are they related? What has to be done to increase investment?