David tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $135 per tuning. One particular week, David is willing to tune the first piano for $115, the second piano for $125, the third piano for $140, and the fourth piano for $175 . Assume David is rational in deciding how many pianos to tune. His producer surplus is
a. $-15.
b. $20.
c. $30.
d. $75.
c
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A bank has no excess reserves. Then it receives a new deposit for $100,000. If it has a desired reserve ratio of 20 percent, by how much can it increase its loans?
A) $20,000 B) $80,000 C) $120,000 D) $180,000
Everything else held constant, if a central bank makes an unsterilized sale of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The U.S. population growth rate in the first half of the 19th century was
a. about the same as that of most European countries. b. lower than that of most European countries. c. much higher than that of most European countries. d. sporadic—sometimes high and sometimes low.
If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was:
a. 325 percent. b. 25 percent. c. 5 percent. d. 8 percent.