If a bank had demand deposits of $80 million and it faced a 25 percent required reserve ratio, it would be required to have how many reserves?
a. $20 million
b. $40 million
c. $60 million
d. $80 million
a
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All else being equal, if the price of a product decreases, we would expect
A. quantity supplied to increase. B. demand to increase. C. quantity supplied to decrease. D. supply to decrease.
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
When a transaction takes place repeatedly, then one way to signal to avoid information asymmetry is:
A. building a reputation. B. screening. C. statistical discrimination. D. Any of these could be true.
Assume that Zark and Bora are related products on the planet Zappo. It is observed that when the price of Zark falls (due to the cyclical nature of the Zark harvest), the demand for Bora quickly rises. On the basis of this information which of the following can be considered true?
a. Zark and Bora are substitutes. b. Zark and Bora are complements. c. Zark and Bora are both luxury goods. d. Zark and Bora are inferior goods.