In a perfectly competitive resource market, the marginal resource cost of a resource equals the price of the resource
a. True
b. False
A
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A bank with $100 million in deposits has $15 million of cash in the bank, $10 million in deposits with the Fed, and $15 million in government securities in its vault. Its total reserves equal
A) $10 million. B) $15 million. C) $25 million. D) $40 million.
If the required reserve ratio is decreased from .2 to .1 the demand deposit expansion multiplier
A) increases from 5 to 10. B) increases from 4 to 4.5. C) decreases from 5 to 2.5. D) decreases from 2 to 1.
For what values of a and b will the following production function exhibit increasing, decreasing or constant returns to scale? q = (La + Ka)1/b
What will be an ideal response?
Imagine that there are only two nations in the world, the United States and Mexico. If Americans buy more goods made in Mexico, other things constant, the
a. U.S. demand curve for Mexican pesos will shift rightward b. U.S. demand curve for Mexican pesos will shift leftward c. U.S. supply curve of Mexican pesos will shift leftward d. U.S. supply curve of Mexican pesos will shift rightward e. U.S. supply curve of Mexican pesos will shift upward