A bank that has assets of $85 billion and a net worth of $10 billion must have:
A. liabilities of $75 billion.
B. excess reserves of $10 billion.
C. liabilities of $10 billion.
D. excess reserves of $75 billion.
A. liabilities of $75 billion.
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In 1973, mainstream sources predicted that the world would run out of oil in
A) 20 years. B) 40 years. C) 100 years. D) Mainstream sources in 1973 predicted the world would never run out of oil.
The nominal return of money is
A) 0. B) r. C) R. D) i.
Because of the income effect, the labor supply curve is
A) eventually backward bending as wage rate increases. B) positively sloped. C) horizontal. D) vertical.
Assume that a monopolist practices perfect price discrimination. The firm will produce an output rate
A) that is greater than the efficient level of output. B) that is less than the efficient level of output. C) that is equal to the efficient level of output. D) that converts consumers surplus into a deadweight loss.