A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of $10,000 is made in A-1, then A-1
A) can immediately loan $9,000.
B) is required to hold the deposit in its reserves.
C) can immediately loan $100,000.
D) can immediately loan a multiple of the $10,000.
E) can immediately loan $10,000.
A
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If the inflation rate is 2.5 percent and the nominal interest rate is 10 percent, then the real interest rate is
A) 2.5 percent. B) 7.5 percent. C) -2.5 percent. D) -7.5 percent. E) 12.5 percent.
During the ________ output ________ its natural level
A) late 1990s, exceeded B) 1960s, deviated relatively little from C) early 1980s, tended to exceed D) all of the above
Marginal cost is equal to
a. TC/Q. b. ?ATC/Q. c. ?TC/?Q. d. ?Q/?TC.
A common characteristic of oligopolies is:
a. independent pricing decisions. b. interdependence in pricing decisions. c. few or no plant-level economies of scale. d. low industry concentration.