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1. If a bank has deposits of $10,000 and reserves of $5,000 and if the reserve requirement is 20%, it can make loans of $5,000.
A. True
B. False
2. A decrease in the demand for money would result from:
an increase in the price level.an increase in income.a decrease in real GDP.an increase in nominal GDP.
3. If long-term interest rates are 8% and short-term rates are 3%, the market expects:
short-term rates to remain the same.
short-term rates to rise.
there is no relationship between long-term and short-term rates.
short-term rates to fall.
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In which of the following market structures can firms earn economic profits in the long run?
Jim spends all his income on apartment rent, food, clothing, and vacations. He gets a pay raise from $3,000 a month to $4,000 a month. At the same time, airfares and other vacation-related expenses increase by 50 percent. How has Jim’s budget in term..
Suppose the cross-price elasticity of demand between goods X and Y is -2. How much would the price of good Y have to change in order to change the consumption of good X by 20 percent?
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Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. Is Bridget making the utilit..
Your marketing department estimates that Medicare urology visits equal 5 − (1.0 × C ) + (−6.5 × T O ) + (5 × T R ) + (0.01 × Y ). Here, C denotes the Medicare copayment (now $20), T O is waiting time in your clinic (now 30 minutes), T R is waiting ti..
Who gets scarce resources in a market economy?
Describe the distinguishing features of the Canadian governance model. Contrast with the governance model of China.
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