When do we say that a bank is loaned up?
a. When its debtors don't want to repay
b. When it is susceptible to a bank panic
c. When its excess reserves equal zero
d. When it is part of a fractional reserve banking system
e. When its required reserves are equal to its excess reserves
c
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The risk premium is
A) the amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset. B) a measure of the riskiness of the overall economy in a domestic country compared with a foreign country. C) the amount an investor must pay to insure his or her stock portfolio to protect against a fall in value. D) the amount an investment bank charges to guarantee an annuity that pays a fixed rate of return in the future.
Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift
a. aggregate supply to the right. b. aggregate supply to the left. c. aggregate demand to the right. d. aggregate demand to the left.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. What is the firm's minimum average variable cost?
A. $ 6 B. $20 C. $ 2 D. $ 8
Given the supply curve of butter, a reduction in the price of margarine will tend to:
a. Increase the demand for margarine b. Increase the demand for butter c. Lower the price of butter d. Raise the price of butter