Suppose a bank has $300,000 in deposits, a reserve ratio of 5 percent, and bank reserves of $45,000. This bank can make new loans in the amount of
A) $345,000. B) $45,000. C) $30,000. D) $15,000.
C
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The market power for a firm in the Cournot model will be greater
A) if the market demand is more elastic. B) if there are fewer firms in the industry. C) if market demand is higher. D) the more output this firm produces.
The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT
A. the price of the good concerned in the law of demand. B. consumer income. C. the prices of substitutes. D. tastes and preferences.
Refer to the graph below. Suppose that its shows the S and D graphs in a market where production entails a significant amount of pollution. In this case, the government should use its coercive power to make:
A. The supply curve shift to the left
B. The supply curve shift to the right
C. The demand curve shift to the left
D. The demand curve shift to the right
FDA approval is ________ if the increase in costs to patients (including the increase in deaths) is equal to the increase in benefits due to more rapid approval.
A. too stringent B. too lax C. just right