What is the effect on the money supply when a commercial bank sells government securities to the public?
What will be an ideal response?
The effect is the same as a repayment of a loan. The bank selling the securities receives a check that in turn draws down the check able deposits at the bank that is responsible for the check. The check able deposits of that bank have decreased its lending ability by decreasing its excess reserves.
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When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent
When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent. A) 50; 50 B) 33; 33 C) 33; 50 D) 40; 40
When the competitive market is using its resources efficiently, the
A) total amount of consumer surplus is maximized. B) total amount of producer surplus is maximized. C) sum of the total amount of consumer surplus plus the total amount of producer surplus is maximized. D) sum of the total amount of consumer surplus plus the total amount of producer surplus equals zero.
Company X is considering different production methods. Assume each worker is paid $50 per hour and each machine costs $90 each. Which of the following will give them the best balance of workers and technology, based on cost?
a. 5 workers and 5 machines b. 7 workers and 4 machines c. 10 workers and 2 machines d. 15 workers and 1 machine
How did the information revolution that kicked in during the late 1990s increase productivity?
A. Businesses learned how to use foreign suppliers to cut costs. B. Businesses were able to sell in larger markets through their websites. C. Businesses learned how to use computers to produce more output with fewer workers. D. Businesses began using the Internet to provide online training for workers.