Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.11, the bank has required reserves of
A) $600,000.
B) $88,000.
C) $112,000.
D) $22,000.
B
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If firms in a perfectly competitive market have dissimilar cost curves what will be the shape of the long-run supply curve?
Suppose the interest rate is 7 percent. Consider four payment options: Option A: $500 today. Option B: $550 one year from today. Option C: $575 two years from today. Option D: $600 three years from today. Which of the payments has the highest present value today?
a. Option A b. Option B c. Option C d. Option D
Explain why abrupt changes in farm output have a magnified effect on market prices.
What will be an ideal response?
Economic growth in the U.S. since 1950 has been characterized by:
A. An average growth rate in real GDP that is slower than the growth rate of the population B. A quadrupling of real GDP from 1950 to 2012 C. An average growth rate in real GDP that is faster than the growth rate of the population D. An average growth rate in real GDP per capita of about 6% per year