You decide to quit your $40,000 a year job to go back to school. Your rent is $9,600 per year, you spend $6,000 per year on food, your tuition costs $24,000 per year, and textbooks cost $3,000 per year
Based on these numbers, what are your yearly explicit and implicit costs of going back to school?
Your explicit costs include tuition and textbooks, which total $27,000. Your implicit costs involve the salary you give up to go back to school, or $40,000. Since you would be paying rent and buying food whether you continued working or went back to school, these costs are not included in the explicit costs of going back to school.
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A) firms hire more workers B) the number of retired people in an economy increases C) the capital stock of an economy decreases D) the rate of unemployment increases
Decisions of ________ determine the magnitude of the monetary multiplier
A) only the Fed B) only the public C) both the Fed and the public D) neither the Fed nor the public E) the Fed and the U.S. Congress
If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves, the money supply expands
Indicate whether the statement is true or false
Goldsmiths are considered to be the forerunners of modern banks because they: a. had safes to keep gold secure
b. issued gold coins. c. created money by lending out gold reserves. d. created legal tender. e. verified the quality of money.