The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. If the reserve requirement is 8.5 percent, how much is the bank holding in excess reserves?
a. $15 million
b. $19.5 million
c. $25.5 million
d. $0 million
b
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The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
Why do cartels tend to break up?
What will be an ideal response?
Sparkle-Bright toothpaste is a new product that advertises it will give you fresh breath and shiny, white teeth. You buy a tube for $1.99, and after brushing, you have both bad breath and dull teeth. Is there a role for the public sector in this situation?
Why is a good considered to be inferior by economists?
a. The change in income and the change in demand move in opposite directions. b. The product has poor quality, thereby lowering demand. c. The change in income and the change in demand move in the same direction. d. The product’s demand decreases despite its high quality.