Suppose the Northwestern Bank has excess reserves of $12,000 and checkable deposits of $125,000. If the reserve requirement is 20 percent, what are the bank's actual reserves?
A. $25,000
B. $37,000
C. $44,000
D. $47,000
B. $37,000
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A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output
Indicate whether the statement is true or false
Figure 7-14
Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
A. 1 B. 2 C. 3 D. 4
A contractionary monetary policy causes
A. higher interest rates, which increases the foreign demand for U.S. financial instruments, which causes interest rates to decrease. There is no effect on net exports. B. lower interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports. C. higher interest rates, which increases the international price of the dollar and decreases net exports. D. higher interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports.
Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = – $10 billion. How big is G?
A. $10 billion B. $20 billion C. $60 billion D. $30 billion