Suppose the Fed announces an increase in the proportion of deposits that a bank is legally required to hold in reserve or on deposit with the Fed. This will:
a. reduce the money supply in the economy
b. increase the amount of excess reserves of commercial banks.
c. decrease the reserve requirements of commercial banks.
d. result in an increase in the money supply in an economy.
a
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A consumer is in equilibrium, that is, a consumer is maximizing her utility when marginal utility and price are equal for each of the goods the consumer purchases
Indicate whether the statement is true or false
Refer to Scenario 12.2. Suppose that the marginal cost falls such that:
MC = Q - 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above
Unregulated natural monopolists produce suboptimal rates of output.
Answer the following statement true (T) or false (F)
Refer to the diagram. An increase in extraction costs could be shown by:
A. an increase in the first year quantity extracted.
B. a shift from TC 1 to TC 0 .
C. a shift from TC 0 to TC 1 .
D. an upward shift of the price line.