The ABC Commercial Bank has $5,000 in excess reserves and the reserve ratio is 30 percent. This information is consistent with the bank having:
A. $90,000 in outstanding loans and $35,000 in reserves.
B. $90,000 in checkable deposit liabilities and $32,000 in reserves.
C. $20,000 in checkable deposit liabilities and $10,000 in reserves.
D. $90,000 in checkable deposit liabilities and $35,000 in reserves.
B. $90,000 in checkable deposit liabilities and $32,000 in reserves.
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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy produced 4 million cell phones using the resources efficiently, the PPF would
A) expand farther than shown in the figure. B) expand along the vertical axis and not along the horizontal axis. C) expand, but not as far as shown in the figure. D) expand evenly along both axes. E) not expand.
Refer to the accompanying table. Julia's opportunity cost of making a cake is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 5/6 of a cake. B. 60 cakes. C. 6 cakes. D. 6/5 of a cake.
A patent provides legal protection for an invention for
A) 20 years. B) 9 years. C) 5 years. D) 3 years.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector X with a price of ________ and a quantity of ________.
A. P0; Q0 B. P1; Q0 C. P0; > Q1 D. P1; Q1