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For every ?$1000 in? deposits, the amount that banks lost in forgone interest? (opportunity cost) because of reserve requirements if banks charged 14?% on loans and the require reserve ratio was 21% is $_______. (Round your response to the nearest two decimal? place.)
If the required reserve ratio? decreases, then the foregone interest due to reserve requirements declines, remains the same, or rises?
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of $200 each year from..
Consider the following statement, paraphrasing one lament by fans. “Fans can never catch up with the vicious cycle of sports event pricing. As fan income rises, they can finally afford the high price of sports events
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
An investment of $20,000 is to be made on a computer system that will last for 6 years and have a zero salvage value at that time. Operating, maintenance and software costs are projected to be $15,000 the first three years and $20,000 the last 3 year..
Assume there is a firm which produces a type of pollution which it would be willing to eliminate for $500. There are 3 households that live far away from each other but are the only ones affected by the pollution. These 3 households would be wi..
Assuming a bank only keeps enough of its reserves to meet its reserve requirement, how much money is created when a bank receives a deposit from an individual of $80,000 and there is a 10% reserve requirement.
Consider a perfectly competitive equilibrium in which each firm’s long run total cost curve is TC(Q)=Q^3−2Q^2+10Q. For each of the following, explain why it cannot a long-run perfectly competitive equilibrium
The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.
What is the present worth of the following cash flow stream? Assume 6% interest (2 pts)
q1. why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal
The supply-side effects of a tax cut arise because taxes act as (a stimulus/an incentive/a disincentive) to work, save, and provide entrepreneurial services. The supply-side from from an increase in government expenditure arise because government exp..
Calculate the probability that a randomly caught fish will be longer than 26.5 inches.
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