Microeconomics is the study of
What will be an ideal response?
individual decision-making units
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Bank A has total deposits of $3 million and total reserves of $1 million. The required reserve ratio is 20 percent. The bank has excess reserves of
A) $20,000 B) $200,000 C) $400,000 D) $40,000 E) There is not enough information provided to answer this question
What will happen to the demand for reserves if real GDP increases?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.
The nominal rate of interest is
A. the real rate of interest minus the previous year's change in the price level. B. the same as the price level. C. lower than the real rate in a period of inflation. D. the interest rate actually paid by the borrower.
A monopolistic competitor finds its profit-maximizing rate of output by
A) equating the marginal revenue from advertising with the marginal revenue from selling the good. B) setting average revenue equal to average total cost. C) equating marginal revenue and marginal cost. D) equating price and marginal revenue.