Suppose a bank repays a $10 million discount loan that it had previously borrowed from the Fed. Illustrate how this affects the balance sheets of the Fed and the banking system
What will be an ideal response?
The Fed's assets decline by $10 million as discount loans decline and its liabilities decline by $10 million as reserves fall. The banking system's assets decline by $10 million due to a decline in reserves and liabilities decrease by $10 million due to a decline in discount loans.
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In the 2-factor, 2 good Heckscher-Ohlin model, the country with a relative abundance of ________ will have a production possibility frontier that is biased toward production of the ________ good
A) labor; labor intensive B) labor; capital intensive C) land; labor intensive D) land; capital intensive E) capital; land intensive
The figure shown portrays a game using a:
A. decision tree. B. decision matrix. C. graph. D. flowchart.
Bandile gives $100 to his favorite charity. According to economists, why did Bandile mostly likely do this?
a. from disregard for his own self-interests b. for entirely non-personal motives c. to selfishly use the charity as a tax deduction d. to have the satisfaction of helping others
If the price of wireless earbuds increases, then there will be ________ of wireless earbuds.
A. a decrease in the supply B. an increase in the supply C. a decrease in the quantity supplied D. an increase in the quantity supplied