Refer to the data. After the deposit of $10 billion of new currency, the maximum amount by which this commercial banking system can expand the supply of money by lending is:
Answer the question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.
A. $9 billion.
B. $45 billion.
C. $36 billion.
D. $90 billion.
D. $90 billion.
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If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output increases from 5 million to 7 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
The approach economists use to analyze competition among oligopolists is called
A) marginal analysis. B) game theory. C) competition among the few. D) oligopoly theory.
A merger between two companies in unrelated fields of business
A) will always lead to economies of scale. B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification. C) may not have any synergistic effects. D) will necessarily lead to an increase in the market power of the merged company.
Leaving a handsome tip for the waiter in full view of your dinner date is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above