If the Fed purchases $50,000 in T-bills from a bank, by how much will the bank's excess reserves increase?
A) by $50,000
B) by $50,000 times the required reserve ratio
C) by $50,000 divided by the required reserve ratio
D) Not enough information has been provided to answer the question.
A
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Since firms outside an industry cannot have an incentive to enter the industry in equilibrium, firms inside a monopolistically competitive equilibrium must be making zero profit.
Answer the following statement true (T) or false (F)
During the antebellum period, rapid economic growth was accompanied by significant changes in public economics and policy-making
Indicate whether the statement is true or false
Refer to Scenario 16.2. Is the current distribution Pareto optimal?
A) Yes. B) No, as Sam could trade Sally a piece of candy for a tee shirt and both people would be better off. C) No, as Sam could trade Sally a tee shirt for a piece of candy and both people would be better off. D) Without the prices of each commodity it is impossible to determine if this distribution is Pareto optimal.
Which of the following is not an example of an intermediate good?
A. an oven bought by a homeowner B. gasoline bought by a trucking company C. flour bought by a bakery D. office supplies bought by an accounting firm