Suppose a sunken ship containing $1000 in currency is dredged out of Lake Erie. The currency is still legal tender, but interest rates are high so no one wants to hold onto the currency; the owners therefore deposit it in a bank. If the reserve requirement is 20% and the banks hold no excess reserves, the eventual result will be
a) the money supply decreases by $200
b) the money supply increases by $1000
c) the money supply increases by $2000
d) the money supply increases by $5000
e) the money supply remains unchanged
d) the money supply increases by $5000
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The demand for U.S. produced packaged food products in foreign countries is expected to
A) grow. B) slow down. C) remain constant. D) fluctuate.
The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?
A) the planned production amounts of Healthy Crunch, another competitor firm B) a news report announcing the benefits of healthy eating C) Healthy Bars pricing policy D) Healthy Bars planned production amounts
According to the graph shown, if a firm is producing at Q2:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. profits are being maximized.
B. average total costs are minimized.
C. it is producing at an efficient scale.
D. All of these are true.
What is the difference between explicit costs and implicit costs? Explain your answer using examples