Bank capital is
a. the machinery, structures, and equipment of the bank.
b. the resources that owners have put into the bank.
c. the reserves of the bank.
d. the bank's total assets.
b
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Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the demand for money if the interest rate increases?
A. It increases. B. It decreases. C. It does not change. D. The quantity of money demanded will increase.
Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would then expect:
A. the demand for gasoline to decrease. B. the demand for sport utility vehicles to increase. C. the demand for sport utility vehicles to decrease. D. the quantity demanded of sport utility vehicles to decrease.
When firms get too big, ___________ set in.
Fill in the blank(s) with the appropriate word(s).
Refer to the above figure. If real Gross Domestic Product (GDP) is $2 trillion, then
A. the level of total planned expenditures is greater than real GDP. B. the level of total planned expenditures is less than real GDP. C. the level of total planned expenditures equals real GDP. D. the level of total planned expenditures equals zero.