Suppose a person has a discount rate of zero. This implies she
A) places no value on the future.
B) places no value on the present.
C) values the present and the future equally.
D) would not lend money at any positive interest rate.
C
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Assume that the commercial banking system has checkable deposits of $10 billion and excess reserves of $1 billion at a time when the reserve requirement is 20%. If the reserve requirement is now raised to 30%, the banking system then has ________.
A. excess reserves of only $.5 billion B. excess reserves of $2 billion C. a deficiency of reserves of $.5 billion D. neither an excess nor a deficiency of reserves
According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is not maximizing profits.
B. is producing where marginal costs are less than marginal revenue.
C. is earning negative profits.
D. should increase production.
Tariffs are:
A. taxes on exports. B. subsidies for imports. C. taxes on imports. D. subsidies for exports.
If the Fed sells a U.S. Treasury bill to a member of the public, the banking system has
a. less reserves and the money supply tends to fall. b. more reserves and the money supply tends to fall. c. less reserves and the money supply tends to grow. d. more reserves and the money supply tends to grow.