Since the mid-1980s, the primary indicator of monetary policy has been
a. movement of short-term interest rates.
b. the growth rate of real government expenditures.
c. the growth of the M1 money supply.
d. changes in the nominal (dollar) size of budget deficits or surpluses.
A
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Table 13.1XYZ Bank Balance SheetAssetsLiabilitiesTotal reserves$100,000Transactions accounts$400,000Loans300,000??Refer to Table 13.1. If XYZ Bank has a required reserve ratio of 10 percent and loan proceeds are not redeposited, it can legally increase its loans by
A. $10,000. B. $60,000. C. $40,000. D. $20,000.
Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.Refer to Scenario 9.2. Tom's total fixed costs equal
A. $1,000. B. $10,000. C. $12,000. D. $21,000.
Historically, investment in stocks have been a prudent investment
A. because stock prices have stayed roughly constant over time. B. because stock prices have generally risen over time. C. because stocks no longer carry any underlying risk. D. because stocks can easily be converted to corporate bonds.
Both a perfectly competitive firm and a monopolist:
a. always earn an economic profit. b. maximize profit by setting marginal cost equal to marginal revenue. c. maximize profit by setting marginal cost equal to average total cost. d. are price takers.