One of the major purposes of reserve requirements is to provide:
a. Sources of foreign exchange.
b. Sources of foreign investment funds.
c. Cash flow for business firms.
d. Monetary authorities with a means of regulating the lending ability of banks.
e. Banks with the means to make loans.
.D
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Suppose that Arnold spends all his income on bratwursts and piano lessons and his marginal utility per dollar on bratwursts is lower than that on piano lessons. Is Arnold maximizing his utility? Why or why not?
What will be an ideal response?
Households' labor supply decisions are influenced by all of the following except _______
A. the opportunity cost of taking leisure and not working B. the after-tax wage rate C. unemployment benefits D. the number of full-time jobs available
Which of the following is a source of market power for a monopolist?
a. a firm may have a patent or copyright b. a firm may control critical resources c. a firm may have a government-authorized franchise d. a firm may enjoy economies of scale e. all of the above are sources of market power for a monopolist
Sally lost her job when her company went out of business because of a recession. This is an example of:
a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. technological unemployment.