Suppose Fed’s purchase of government bonds results in a $140,000 increase in the excess reserves of a particular bank. What would be the applicable reserve requirement for the whole banking system to be able to expand the money supply by $560,000?
a. 4 percent
b. 12 percent
c. 16 percent
d, 20 percent
e. 25 percent
e) 25 percent
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Consider an auctioneer who is selling an item through an auction. It is known that the 25 risk-neutral bidders have affiliated values that are distributed between $0 and $500 million. Based on this information, the auction type that will maximize expected revenue is:
A. first-price, sealed-bid auction and Dutch auction. B. English auction. C. second-price, sealed-bid auction. D. English auction and second-price, seal-bid auction.
In Porter's model of the determinants of national competitive advantage, he noted many US firms were led by people with ______ backgrounds, likely leading to US firms' lack of attention to improving manufacturing process and product design.
Fill in the blank(s) with the appropriate word(s).
Over the past year, output grew 6%, capital grew 2%, and labor grew 4%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A. 2.0% B. 3.0% C. 3.3% D. 2.6%
With regard to preventing entry, if identical firms act simultaneously,
A) they cannot credibly threaten each other. B) they will all incur losses. C) only one firm will enter the market. D) none of them will enter the market.