Which of the following is the result of a banking panic?
a. A decrease in the demand deposit multiplier
b. An increase in the money supply
c. An increase in bank reserves
d. A decrease in the money supply
e. An increase in the demand deposit multiplier
D
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:
A. $200. B. $100. C. $400. D. $300.
The figure above shows the loanable funds market. If the real interest rate is 10 percent, then
A) there is a shortage in the loanable funds market. B) the government must intervene in order to prevent a credit crisis. C) the interest rate must increase. D) savers will exit the market because of the high opportunity cost of saving. E) there is a surplus in the loanable funds market.
The marginal product of labor and the price of the output produced determine the:
A. worker mobility B. the demand for labor C. the price of labor D. the supply of labor
Default refers to the
A. Rate of interest to be paid on a bond. B. Failure to make scheduled interest or principal payments on a bond. C. Failure of stock to increase in value. D. Amount to be repaid when the bond is due.