Suppose the bank has a 10% reserve requirement, $5000 in deposits, and has loaned out all it can, given the reserve requirement
A. It has $500 in reserves and $4500 in loans
B. It has $50 in reserves and $4950 in loans
C. It has $555 in reserves and $4445 in loans
Ans: A. It has $500 in reserves and $4500 in loans
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Refer to the scenario above. Which of the following combinations will lie above Jack's production possibilities curve?
A) 2 paintings and 3 sculptures B) 5 sculptures only C) 10 paintings only D) 3 paintings and 5 sculptures
Julia is offered two options of government subsidies: $100 food stamp or $100 cash. If she receives $100 cash, she will spend $80 on food
If equivalent evaluation is measured for the situation when only $100 is available to her, the equivalent evaluation is A) greater than $100. B) equal to $100. C) less than $100. D) Not enough information.
Once marginal costs rise above the average cost,
a. Average cost increases b. Average cost decreases c. Average costs will stay the same d. None of the above
Free markets can:
a. prouduce goods and services with maximum efficiency b. solve unemployment c. protect the environment d. all of these