The capital market is a market in which only financial capital is acquired
a. True
b. False
Indicate whether the statement is true or false
False
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If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
a. increase by $50. b. decrease by $50. c. increase by $200. d. decrease by $200.
Answer the next question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in billions.AssetsLiabilities & Net WorthReserves$51 Checkable Deposits$140Loans109 Stock Shares130Securities100 Property10?Refer to the above data. If the commercial banking system actually loans the maximum amount it is able to lend:
A. excess reserves will be $2.6 billion. B. excess reserves will fall to $1.7 billion. C. excess reserves will be reduced to zero. D. reserves and deposits equal to that amount will be gained.
Which of the following equations is incorrect?
A) ATC - AFC = AVC B) AVC + AFC = ATC C) AFC = ATC - AVC D) ATC = AVC - AFC
Refer to Scenario 7.1 below to answer the question(s) that follow. SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. Refer to Scenario 7.1. A yearly normal return for your computer software firm would be
A. $20,000. B. $40,000. C. $60,000. D. $100,000.