What is the maximum amount a bank can lend?
A) its total reserves
B) its excess reserves
C) its excess reserves divided by the required reserve ratio
D) the value of its checkable deposits times the required reserve ratio
B
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Marginal costs are the costs relevant to a decision because they
A) are the costs that will be affected by the decision. B) the cost of producing one more unit of output. C) total cost divided by units of output. D) total cost minus sunk costs.
Compared to other countries, the U.S. government is very concerned with intellectual property rights. This can explain, in part, the success of its software, computer and other electronic industries
Indicate whether the statement is true or false
If a union negotiates a wage above the market equilibrium, each firm's
a. supply of labor is greater than its marginal resource cost b. supply of labor is less than its marginal resource cost c. supply of labor is equal to its marginal resource cost d. demand for labor is less than its marginal resource cost e. demand for labor is greater than its marginal resource cost
Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan amount is:
A. $400. B. $1,600. C. $160. D. $85.