To create deposits for clients to which it makes loans, a bank typically uses its
A. liabilities.
B. required reserves.
C. excess reserves.
D. federal reserves.
C. excess reserves.
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Why do firms in perfectly competitive markets have no control over the price of their products?
What will be an ideal response?
An area that is rising significantly in cost is:
a. Health care b. Home appliances and electronics c. College tuition d. both a and c are correct
Investment in
a. physical capital, unlike investment in human capital, has an opportunity cost. b. physical capital, like investment in human capital, has an opportunity cost. c. human capital is particularly attractive because it involves no externalities. d. human capital has been shown to be relatively unimportant, relative to investment in physical capital, for a country's long-run economic success.
Disposable income is defined to be:
A. total income plus taxes. B. total income minus depreciation. C. total income minus taxes. D. All of these are true.