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The regulators at the FDIC decide to change the captial requirement in order to help prevent another bank crisis. They increase their required capital-to-asset ratio. In the space below explain how a bank can accomplish this -- how they could bring the bank into compliance with the capital requirement. (Hint: I am not asking you to explain how to calculate the new ratio or the new new capital. I am asking you to tell what actions the bank will take to implement the required changes.)
Mike's Cafe is a profit-maximizing, competitive coffee shio. Mike charges $2 per cup. His total cost each day is $150, of which $75 is a fixed cost. He sells 50 cups a day. What can you say about Mike's short-run decision regarding shut-down and his ..
Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his personal expenses. If Arapine is insolvent and unable to pay its debts, and the corporation’s creditors sue Brian personally..
Suppose that a monopolistically competitive restaurant is currently serving 250 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $13 per meal.
In the article "How Racism Doomed Baltimore," in the New York Times, the author argues that rather than reflecting a history of racial discrimination policies, the problems in Baltimore stem primarily from the actions of a few rogue police officers. ..
when markets for goods as well as services gain access to the Internet, more consumers and more businesses participate in the market.
q1. the following represents the potential outcomes of your first salary negotiation after graduation assuming this is
What if the government needs to purchase a single, large piece of property in order to provide a public good, say, a satellitetracking station? There is only one private owner with whom to deal. And his property is the only one that is suitable for t..
You are given the following information about the economy of Nocoin: The banks have submitted of $300 billion, two thirds of which is in deposits with the central bank.
who expend resources to ensure that y only buy IPOs that will yield positive returns over time and uninformed investors who buy stock indiscriminately and without information (Rock, 1986, p. 190). Could IPOs Be Lemons.
If the real wage is equivalent to the marginal product of labor such that w=MPL=9, how much labor will be demanded? What happens to the demand for labor when the real wage declines to $5? Now assume that the capital used in the production process is ..
The number of strikes in the economy will be lower in years having:
Do you think the industry environment is significantly dissimilar today.
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