A hamburger costs $1.79 in New York and €2.54 in Paris. If the exchange rate is $0.93 per euro, what price difference exists in terms of the European currency?
a. The hamburger sells for €0.13 less in New York.
b. The hamburger sells for €0.13 more in New York.
c. The hamburger sells for €0.62 less in Paris.
d. The hamburger sells for €0.62 more in Paris.
e. The hamburger sells for the same price in both cities.
d
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The principal-agent problem is a problem
A) of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. B) that exists when a person (principal) has more information about the task than the agent he hires to perform the task. C) caused by agents pursuing their own interests rather than the interests of the principals who hired them. D) caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; cooperation B. cooperation; aggression C. aggression; aggression D. cooperation; cooperation
If the tax multiplier is -9 and taxes are reduced by $100 billion, output
A. increases by $100 billion. B. increases by $900 billion. C. falls by $100 billion. D. falls by $900 billion.
The Bank of Mesquite has $2 million in deposits and $550,000 in reserves. If excess reserves are equal to $150,000, the required reserve ratio is
A. 15%. B. 20%. C. 35%. D. 65%.