For a bank to earn as much profit as possible, its excess reserves should be:
A. equal to its required reserves.
B. as small as possible.
C. less than its vault cash.
D. growing at a constant rate.
Answer: B
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Explain how a stock market crash has the potential to lead to a recession in an economy
What will be an ideal response?
Other things equal, if planned investment spending is greater than actual investment spending, then aggregate expenditure will be ________ real GDP and inventories will ________
A) greater than; rise B) greater than; fall C) less than; rise D) less than; fall
Which of the following market structures is (are) capable of earning positive economic profits in the long run?
A) monopoly B) oligopoly C) monopolistic competition D) Both A and B.
Bancroft Pharmaceuticals has a patent on a new medication used to treat high blood pressure, so it is the monopoly seller of this new drug product
The marginal cost of producing one dose of the drug is $10, and the elasticity of demand for the product is -3. What is the profit maximizing monopoly price for this patented drug product? A) $10 B) $12.50 C) $15 D) $30