The divergence between money costs and opportunity costs will be greatest in which of the following situations?
a. A university purchases 100 computers.
b. A university employs people from town in the commissary (people prefer this job to working in the paper factory).
c. A university employs otherwise unemployed teenagers to paint crosswalks and curbs.
d. A university replaces the roof of the fine arts building.
c
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The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the
A. spending lag. B. implementation lag. C. legislative lag. D. recognition lag.
Nobody needs soda. So why do people drink it?
A) They deny the data and believe they really do need soda. B) The expected additional benefits of another soda outweigh the additional costs. C) There are no substitutes for soda. D) Soda is a good for the people who consume it, and therefore they will drink it at any price.
If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of
A) $16,000. B) $20,000. C) $26,000. D) $36,000.
Who had served as a de facto lender of last resort during the 1907 panic?
A) The U.S. Treasury B) J. P. Morgan C) Henry Ford D) John D. Rockefeller