Suppose the Fed sells $10 million in government securities to a commercial bank. If the required reserve ratio is 0.2, what is the maximum amount by which checkable deposits in the banking system can change?
a. +$10,000,000
b. ?$10,000,000
c. +$50,000,000
d. ?$50,000,000
e. +$20,000,000
d
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When the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is
A) decreasing. B) constant. C) increasing. D) More information is needed to answer the question.
A VAR with five variables, 4 lags and constant terms for each equation will have a total of
A) 21 coefficients. B) 100 coefficients. C) 105 coefficients. D) 84 coefficients.
What is the difference between a solution to a game in a pure strategy and a mixed strategy situation?
Natural monopolies are most likely to arise when firms have:
A. low start-up costs and low marginal costs. B. high start-up costs and high marginal costs. C. low start-up costs and high marginal costs. D. high start-up costs and low marginal costs.