If Mellon Bank has demand deposits of $6 billion and excess reserves of $50 million, and the reserve requirement is 10%, the bank's actual reserves are
A. $550 million.
B. $600 million.
C. $650 million.
D. $1 billion.
C. $650 million.
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If ________, total efficiency units of labor will increase
A) firms hire more workers B) the number of retired people in an economy increases C) the capital stock of an economy decreases D) the rate of unemployment increases
The principal-agent problem is a problem
A) of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. B) that exists when a person (principal) has more information about the task than the agent he hires to perform the task. C) caused by agents pursuing their own interests rather than the interests of the principals who hired them. D) caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
According to Coase, the efficient solution to an externality problem depends on which party can avoid the problem at the lower cost. Thus when property rights are assigned to one party or another, the two parties will agree on the efficient solution to an externality problem as long as transaction costs are low, regardless of which party is assigned the property right
Indicate whether the statement is true or false
Figure 10-12
In , which of the following would most likely cause the movement from point E1 to point e2 for the United States?
a.
a severe drought in agricultural areas
b.
a major technological improvement
c.
business and consumer pessimism about the future direction of the economy
d.
a decrease in the expected inflation rate