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Suppose that the reserve requirement is 10% and the balance sheet of the People's National bank looks like the accompanying example.
a.) What are the required reserves of People's National Bank? Does the bank have any excess reserves?
b.) What is the maximum loan that the bank could extend?
c.) Indicate how the bank's balance sheet would be altered if it extended this loan?
d.) Suppose that the required reserves were 20%. If this were the case, would the bank be in a position to extend any additional loans? Explain?
part-11.theory of the firmaif in an efficient brewing industry firms operating at lowest possible average cost produce
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Mark discovers that he needs to do an additional $200 of work to make the cabinet worth $360 topotential buyers. He could also sell the cabinet now, without completing theadditional work, for $100. What should he do?
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What is the profit maximizing level of output for this monopolist? What price will the firm charge? What profit will the firm earn and what are your answers to (a) if average consumer income is $30,000?
nationally the monthly survey of american households found 387000 more people at work in february than in january but
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