If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million in loans and $80 million in deposits, what is the level of required reserves for the bank?
a. $100 million
b. $16 million
c. $80 million
d. $20 million
e. $36 million
B
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For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market. Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?
What will be an ideal response?
The above figure shows the U.S. market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________
A) $500; $300 B) $14; $12 C) $500; $700 D) $12; $14 E) $700; $300
Refer to Figure 4-15. For each unit sold, the price sellers receive after the tax (net of tax) is
A) $20. B) $22. C) $27. D) $32.
Explain the following figure
What will be an ideal response?