A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 20 percent. If the reserve requirement is lowered to 10 percent, the bank's excess reserves will be
A) $1,000.
B) $8,000.
C) $9,000.
D) $17,000.
C
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If an economy grows at 6 percent per year, how many years would it take for real GDP to double?
What will be an ideal response?
Unplanned inventories increase when
A) aggregate planned expenditure is less than GDP. B) actual aggregate expenditure is greater than aggregate planned expenditure. C) actual aggregate expenditure is equal to GDP. D) actual aggregate expenditure is less than GDP. E) real GDP is less than aggregate planned expenditure.
Refer to the figure above. If the monopolist faces a constant marginal cost of $6, what is the optimal quantity that it should produce?
A) 20 units B) 30 units C) 40 units D) 60 units
An externality can be a
A) cost or a benefit. B) benefit but not a cost. C) cost but not a benefit. D) marginal cost but not a total cost.