The fraction of deposits that banks are required by law to hold and not lend out are called its:
A. reserves.
B. excess reserves.
C. required reserves.
D. net worth.
Answer: C
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Which of the following statements correctly describes a total product curve?
A) Points above the total produce curve are efficient. B) The curve shows that output always increases as labor employed increases. C) The curve separates attainable outputs from unattainable outputs. D) The curve shows minimum levels of output. E) The curve first falls, reaches a minimum, and then rises.
If the money wage rate is constant and the price level increases, what happens to the real wage rate, firms' profits, and the aggregate quantity supplied?
What will be an ideal response?
Sue has human capital worth $500,000 and nonhuman capital of $100,000. Todd has human capital worth $10,000 and nonhuman capital of $50,000. The return on each type of capital is 10 percent a year
Sue's income is ________ and Todd's income is ________. A) $10,000; $5,000 B) $50,000; $1,000 C) $600,000; $60,000 D) $60,000; $6,000
Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50,
a. its sales would rise to 250 cups b. its revenue would decrease c. its revenue would rise d. its total revenue would equal $200 e. the market price will fall to $0.75 as other coffee sellers match the price cut