If Bank A sells some its loans to Bank B for cash, everything else equal:
A. Banks A's total assets do not change, but Bank A is more liquid.
B. Bank A's liabilities decrease by the amount of the loans that are sold.
C. Bank A becomes less liquid while Bank B becomes more liquid.
D. Bank A's assets decrease and Bank B's assets increase.
Answer: A
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Refer to Table 17-6. The Hair Cuttery, a new hair salon, is ready to start hiring. The table above shows the relationship between the number of hairdressers the firm hires and the quantity of haircuts it produces
a. Suppose the price of haircuts is $8. Complete the table by filling in the values for marginal product and marginal revenue product. b. The Hair Cuttery is an input price-taker. Suppose the wage paid to hairdressers is $40 per day. What is the profit-maximizing number of hairdressers? c. Suppose the wage rate rises to $60 per day. (i) What happens to the firm's demand curve for hairdressers? (ii) What happens to the profit-maximizing quantity of hairdressers? d. Suppose the wage rate is $40 per day and the price of haircuts is now $10. (i) What happens to the firm's demand curve for hairdressers? (ii) What happens to the profit-maximizing quantity of hairdressers?
One of the largest foreign portfolio investments in the U.S. comes from:
A. U.S. purchases of Chinese consumption goods. B. U.S. purchases of Chinese government debt. C. Chinese purchases of U.S. government debt. D. Chinese purchases of U.S. capital goods.
Each of the following companies was split up as a result of antitrust prosecution EXCEPT
A. AT&T. B. the Standard Oil Trust. C. the American Tobacco Trust. D. U.S. Steel.
Interest sensitive consumption is negatively impacted by interest rates because when you
A. pay cash for something, the price you really pay depends on the interest rate. B. buy something on installments (like a car), your payments are positively related to the interest rate, so a higher interest rate would mean a higher payment, and therefore, less interest sensitive consumption. C. buy something you really need, the price you really pay depends on the interest rate. D. buy something on installments (like a car), your payments are negatively related to the interest rate, so a higher interest rate would mean a higher payment, and therefore, less interest sensitive consumption.