Suppose the reserve requirement is 20 percent and banks hold no excess reserves. A $1 billion sale of government securities by the Fed will:
A. reduce checkable deposits in the banking system by $1 billion.
B. increase checkable deposits in the banking system by $5 billion.
C. reduce checkable deposits in the banking system by $5 billion.
D. increase checkable deposits in the banking system by $1 billion.
Answer: C
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An official measure of money in the United States is M1, which includes the sum of
A) checkable deposits plus small time deposits. B) currency plus checkable deposits. C) currency plus credit card transactions. D) currency plus traveler's checks plus time deposits. E) currency plus traveler's checks plus checkable deposits plus small time deposits plus money market funds and other deposits.
Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D
In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion? A) A B) B C) C D) D
According to the above figure, the maximum profit the monopolist can receive is
A) 0. B) $1,500 per day. C) $9,000 per day. D) $7,500 per day.
The opportunity cost of your college education is:
a. c and d. b. d and e. c. the actual dollar cost of your college education. d. your best alternative use of the money you spend for a college education. e. money you could have earned working instead of going to college.