The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred
Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary?
A) $90 B) $900 C) $810 D) $1,000 E) $100
C
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A price searcher faces the following demand curve: At $9, $8, $7, and $6, the quantity demanded is 10, 20, 30, and 40 units, respectively. If the firm's marginal cost is $50 at any level of output, it would maximize net revenues by
A) producing 10 units and charging $9. B) producing 20 units and charging $8. C) producing 30 units and charging $7. D) producing 40 units and charging $6. E) charging $50 plus markup.
A payment of $105 next year can be more valuable than a payment of $100 now
a. True b. False
Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:
a. growth of national income. b. changes in inflation. c. income distribution. d. changes in the size of the population. e. changes in the level of output.
The object of inflation targeting is for a country's central bank to try to keep the inflation rate near
A) the country's historical average economic growth rate. B) some predetermined level. C) the country's historical average inflation rate. D) the country's historical average unemployment rate.