If the reserve requirement was 5% and a bank customer makes a deposit of $1,000, the initial result would be:
a. a $950 increase in required reserves and a $50 increase in excess reserves.
b. a $20,000 increase in required reserves and a $950 increase in excess reserves.
c. a $50 increase in required reserves and a $20,000 increase in excess reserves.
d. none of the above
d
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When an investor buys a corporate bond, the ________ is a loan to the corporation
A) principal of the bond B) bond's dividend payments C) interest on the bond D) coupon payment
Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) If the firm does not exit the industry in the long run its demand curve will shift to the right. B) The firm could exit the industry in the long run. C) If the firm remains in the industry in the long run it will break even. D) If the firm does not exit the industry in the long run its demand curve will shift to the left.
In perfect competition, innovation is a means for a firm to
a. exit the market b. establish brand loyalty c. shift the ATC and MC curves upward d. generate short-run economic profit e. shift the market supply to the left
Which definition of the money supply includes credit cards?
a. None of the answers include credit card balances. b. Each of the answers includes credit card balances. c. M2. d. M1.