Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to remain the same and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to fall.
d. Demand for real goods and services to rise and monetary base to remain the same.
.D
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Why didn't the surge in the monetary base between 2008-2012 lead to a similar surge in the money supply?
A) The currency-deposit ratio rose significantly, resulting in a much smaller money multiplier. B) The excess reserve-deposit ratio rose significantly, resulting in a much smaller money multiplier. C) The Fed increase the required reserve ratio, resulting in a much smaller money multiplier. D) Nonborrowed reserves declined, offsetting the increase in the monetary base.
Consider that the C&A Lawnmower Firm operates in a highly competitive industry, the MB(Q)=$100.00, and the estimate for the total cost is given by C(Q)=100,000+20Q+0.1Q²
a. What is net benefit maximizing level of output? b. What is the total benefit function? c. What is the maximum net benefit?
Answer the following questions true (T) or false (F)
1. Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays. 2. Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product. 3. The total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price.
All else equal, less investment takes place at
A. lower expected rates of return. B. higher market interest rates. C. lower market interest rates. D. lower real interest rates.