On any given day we know a salesman can earn $0 with a 30% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0.
B) $140.
C) $300.
D) It cannot be determined from the available information.
B
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Suppose a bank has $200,000 in deposits and a reserve ratio of 15 percent. Its required reserves are
A) $350. B) $1,500. C) $3,000. D) $30,000.
Under the Bretton Woods agreement, the officially determined value of a country's currency is referred to as its
A) GDP. B) par value. C) exchange rate. D) value-to-weight ratio.
Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases b. decreases c. remains unchanged because the demand curve didn't change d. remains unchanged because the quantity demanded remains unchanged e. decreases only if price elasticity of demand is greater than one
Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?