Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:
Refer to the data above. If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be, respectively:
A. $50,000 and $120,000
B. $50,000 and $106,000
C. $36,000 and $120,000
D. $36,000 and $106,000
D. $36,000 and $106,000
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Refer to Figure 13-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?
A) It will remain constant. B) It will rise. C) It will fall. D) not enough information to answer the question
If adopted by a firm, a labor-augmenting piece of technology is one that would:
A. increase labor demand. B. increase labor supply. C. decrease labor demand. D. decrease labor supply.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Based on their production possibilities frontiers, Tom and Jerry:
A. can both benefit from trade because absolute advantage exists. B. could both benefit from trade because comparative advantage exists. C. cannot benefit from trade because Tom has the absolute advantage in both goods. D. will not decide to trade because no comparative advantage exists.
A balance of payments deficit is defined as the amount by which
a. a country's exports exceed its imports. b. a currency must appreciate in order to reach equilibrium. c. quantity supplied of a country's currency exceeds quantity demanded. d. quantity demanded of a country's currency exceeds quantity supplied.