If actual reserves in the banking system are $50,000, excess reserves are $5,000, and checkable deposits are $225,000, then the monetary multiplier is:
A. 10.
B. 4.
C. 5.
D. 2.
C. 5.
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All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments. B) the larger number of companies listed on world stock exchanges. C) the need to protect from sudden changes in currency values. D) the problem of volatility in financial capital flows. E) the reduction in transaction costs for foreign investment.
Explain why a firm can earn more profit by price discrimination than from setting a uniform price
What will be an ideal response?
Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PIf the United States engages in free trade and the international price of skateboards is $75, it would import ________ skateboards from the rest of the world.
A. 95 B. 85 C. 65 D. 75
If the economy depicted in Figure 9.9 produced at a full-employment output level of $50 billion instead of the equilibrium output level, inventory levels would
A. Decrease by $50 billion. B. Increase by $25 billion. C. Decrease by $25 billion. D. Increase by $50 billion.