This profit-maximizing (loss-minimizing) firm is making a profit or loss of about __________.
A. $480
B. $500
C. $800
D. -$450
D. -$450
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In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate
to fall, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply
Under monopoly, resources are allocated as efficiently as in perfect competition
a. True b. False Indicate whether the statement is true or false
As the price level falls
a. people are more willing to lend, so interest rates rise. b. people are more willing to lend, so interest rates fall. c. people are less willing to lend, so interest rates fall. d. people are less willing to lend, so interest rates rise.
The value of a firm is
A. the price for which the firm can be sold minus the present value of the expected future profits. B. larger the higher is the risk premium used to compute the firm's value. C. smaller the higher is the risk premium used to compute the firm's value. D. both b and c