If a check was written on Bank A for $100 and Bank B presented the check to Bank A for payment, what will happen to the required reserves for each respective bank after payment is made?
A) Both banks will see a decrease in their required reserves.
B) Bank A's required reserves increase; Bank B's decrease.
C) Bank B's required reserves increase; Bank A's decrease.
D) Both banks will see an increase in their required reserves.
C
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When asset prices increase above their fundamental values it is called an
A) asset-price bubble. B) irrational bubble. C) asset-price spike. D) irrational spike.
The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save? B) What is the efficiency wage model? C) What does consumption equal if the economy is in equilibrium? D) What is the multiplier? E) What does disposable income equal if the economy is in equilibrium?
The figure above shows cost curves for a perfectly competitive firm. If market price is $0.70, a profit-maximizing firm will produce ________ units of output and earn profits of ________.
A. 500, -$50 B. zero, -$450 C. 500, -$450 D. zero, -$400
The marginal product of labor is calculated using the formula
A) L/Q. B) ?L/?Q. C) ?Q/?L. D) Q/L.