Opportunity cost is the value of the next best alternative that is given up.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
Assuming a reserve ratio of 10 percent, if a bank sells $100,000 in securities how much can the bank loan out?
A) $90,000 B) $100,000 C) $110,000 D) $10,000
A sudden decrease in the market demand in a competitive industry leads to
a. A market equilibrium price higher than the original equilibrium in the short-run b. A market equilibrium price equal to the original equilibrium in the long-run c. Both a and b d. None of the above
Suppose a bank has $2 million in deposits, a required reserve ratio of 10 percent, and total reserves of $500,000. Then it has excess reserves of
A. $200,000. B. $500,000. C. $300,000. D. $50,000.