The value of the monetary multiplier is:
A. 1/interest rate.
B. 1/marginal propensity to consume.
C. 1/Required reserve ratio.
D. 1/Excess reserves.
Answer: C
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Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. What are Tom's accounting profits?
A. $50,000 B. $24,000 C. $35,000 D. $6,000
The market for smartphones did not exist 30 years ago because
A. the technology did not exist to produce smartphones. B. portable electronic devices were illegal. C. smartphones were too expensive for most consumers. D. consumers did not need or want smartphones.
Given the industry supply and demand shown on the right side of the below graph, use the left side of the figure to draw the perfect competitor's demand, marginal revenue, average total cost, and marginal cost curves for its long-run situation.
A nation running a persistent balance of payments deficit while part of a fixed exchange rate system would have to __________ international reserves in an effort to prevent its currency from __________
A) amass; appreciating B) amass; depreciating C) pay out; appreciating D) pay out; depreciating