Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio 20%. If the Fed reduces the required reserve ratio 10%, and the bank keeps same reserves as before the change, it will now have excess reserves of 0 Million 10 million 20 million 30 million

Q: The monopoly portion of the market structure "monopolistic competition" refers to _____, while the…

A: When talking about the monopolistic competition, it can be said that a firm in this market will act…

Q: Consider a monopolist that has a constant marginal cost of 10. The demand for its product is given…

A: Monopoly is a single firm in the market producing unique good in the market.

Q: State the production levels for this economy at Point B:   iv. If the firm is operating at point…

A: Production possibility frontier represents the combination of two goods that a nation can produce by…

Q: A country reported nominal GDP of $200 billion in 2006 and $180 billion in 2005; it reported a GDP…

A: the GDP deflator measures the changes in the GDP that results from changes in the price level.…

Q: 2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 15…

A: Diminishing marginal returns occur when an increase in Labor led to increasing in output at…

Q: a)In the two-period small open economy model, explain how the nation makes its choices. b) In the…

A: An open economy is a kind of economy where domestic elements as well as substances in different…

Q: 5. Now assume that a recession ( triggered by a reduction of Aggregate Demand ) causes each of the…

A: Tax paid = Tax rate * Income

Q: If workers are getting paid $8/hour, will the company have enough workers? How do you know?

A: Surplus: The situation of surplus in an economy exists at a price that is greater than the…

Q: Why might an additional ax have lower marginal utility for a woodsman than a box of cupcakes?…

A: The marginal utility of a good is a change in total utility due to a change in the consumption of a…

Q: Why can't the answer be the Ricardian economic theory? The theories are very similar but what…

A: In Ricardo's theory, which depended on the labor hypothesis of significant worth (basically, making…

Q: A retail flower shop in Metro Manila, called Floreau, sells arranged flowers. The shop can make…

A: The breakeven point for a still up in the air by looking at the market cost of an asset to the first…

Q: Suppose Canada's economy is in a long-run equilibrium with real GDP equal to potential output. Now…

A: Here, it is given that Canadian economy is operating at the full-employment level and there is a…

Q: Explain what does it mean by a double counting problem in calculating national output. How can we…

A: National income defines a country's wealth. It is the total value of goods and services produced…

Q: Heterogeneity and the dynamic nature of labor markets are the principal causes of frictional…

A: In the labor market, different types of unemployment is caused by the nature of the marketplace and…

Q: An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units per…

A: Cost function shows how the cost of the production of a good changes with the change in the quantity…

Q: Short Answer Part 1 Consider this as a simultaneous-move (st sic) game: Player B Left Right Top 5, 1…

A: We have simultaneous move game between two players And B. Where both have two strategies that thay…

Q: Money supply decreases if the central bank reduces overnight policy rate. buys back government…

A: The money supply is the total amount of currency and liquid assets in a country's economy on the…

Q: Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: The genuine yearly compounded interest rate that is comparable to an interest rate compounded at a…

Q: Pillar Co makes decorative candles which are made from a special organic blend of beeswax, botanical…

A: The supply curve shows the positive relationship between price and quantity supplied. The supply…

Q: 4. Compute the Gross National Product (GNP) in I. Income approach II. Expenditure Approach a.…

A: "Gross domestic product or GDP measures the market value of all the final commodities and service…

Q: Suppose there are only two individuals A and B in the economy with utility function of first…

A: Utility Function  Utility function refers to the function of consumption of two goods by the…

Q: 2. What is the significance role of financial institutions, is and how it operates? of understanding…

A: The business entities that tend to provide services as being intermediaries for various monetary…

Q: Suppose life expectancy in years (L) is a function of two inputs, health expenditures (H) and…

A: Marginal product of an input is the increase in output by employing one more unit of the input

Q: 3. Suppose that Poland Spring has the following production function for bottled water: Q=K+10L 1/2…

A: We use the following formulas: 1) Marginal Product of Capital (MPK)= ∆Q∆K = dQdKThe marginal product…

Q: How does labor and capital disaggregation affect less developed countries that want robust economic…

A: Asymmetric information is a basic friction in the labor market that causes mismatches and efficiency…

Q: Which one of the following is true? Oreal GDP = nominal GDP - Price level O nominal GDP = Real…

A: Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced…

Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…

A: Utility theory is a positive theory. that looks to make sense of the people's noticed way of…

Q: Consider the model of competitive insurance discussed in lectures (Topic 6.7). Peter is a risk…

A: In a competitive insurance market the fair premium price is equal to the expected value of the loss…

Q: Charles started working in 2006 when the CPI was 100. His salary has remained at $30,000 since 2006.…

A: The Consumer Price Index measures the overall change in consumer prices over time based on a…

Q: Often, firms offer a larger quantity (milk, paint, toilet paper, a cup of Coke, second dress, second…

A: Sellers frequently give a bulk discount to persuade customers to buy in bigger numbers. The vendor…

Q: Which of the following external sources of increasing capital stock has maximum political…

A: When talking about openness of a country, it will be beneficial for both the country as it improves…

Q: Assume that demand and supply are a simple line. If at the different prices, quantity of demand and…

A: Supply and demand is the core component of the economy , and the price of any goods and services…

Q: 1. From 2009 to 2010, per capita real gross domestic product (GDP) in country C grew by 2.8 percent.…

A: Yearly development pace of genuine GDP per capita. Yearly development pace of genuine Gross Domestic…

Q: Madeleine is a high school graduate deciding whether to go to university. She (like everyone else)…

A: Madeline's net [resent value of income =Income in period 1 + Income in period 2(1+r) Without…

Q: Part (b) Suppose that you have the following information about a perfectly competitive firm: P Q ATC…

A: P=$8 Q=1000

Q: Two companies produce similar items for the same market. Company 1 produces q₁ items and Company 2…

A: Given information Demand function P=100-q1-q2 C1=7q1--- firm 1's cost C2=10q2-- firm 2's cost Firm…

Q: Two individuals are in negotiations to terminate a contract. Person A, was the signatory to the…

A: Given information A contract is worth buying=R1000 2 partners=A and B Person A is signing authority…

Q: If price discrimination is the option to implement within the context of elasticity of demand, what…

A: Price discrimination refers to charging different prices to different customers for the same…

Q: There is still unemployment rate of 3% even though the economy is at full employment. This is…

A: Full employment refers to an economic situation in which all available labour resources are used as…

Q: maintenance costs of a new boiler are estimated as follows:  P 600 per year for the first 3 years, P…

A: We have, First 3 year cost = P600 per year the 4th year cost = X 5th to 10 years cost = P1800 per…

Q: Which of the following related to Transfer payment? Pocket money to children All the above wear and…

A: Transfer payments are not included in government purchases as a component of GDP.

Q: Suppose that a consumer's annual demand for office visits is described by the equation Q = 8 -0.1p…

A: Both the demand and supply bend show the connection between price and the number of units demanded…

Q: The primary purpose of he Coordinalion of Benefits provision found in most group Major Medical…

A: This is an arrangement in the agreement that applies when an individual is covered under more than…

Q: the Trade Minister argues that the country should not adopt ISI. They asks you to help her explain…

A: The exchanges of goods and services among nations through their national boundaries are considered…

Q: Is there a commonality of the customer’s needs across countries?What will the product be used for…

A: Yes there a commonality of the customer’s needs across countries.

Q: = Use the following table to answer the question about taxes, where P Price buyers pay, P, Price…

A: Tax revenue is included in the Receipt Budget, which is then included in the Union Budget's Annual…

Q: The cost of the Good Son Stroller to the retailer is $245.  If the retailer wants a rate of mark up…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Which factor of production is almost never included in a firm's fixed costs? Land Labor Capital All…

A: Fixed refers to the cost which does not change with change in the output level. The variable cost…

Q: Suppose that consumer has the following utility function: U(X,Y)= X1/2y1/2 and Px = 1, Py = 4 and 1=…

A: We have cobb Douglas utility function for the consumer and initial prices and income are. Px = 1, Py…

Q: 2. Monopoly, Practice Question Firm P is a monopolist for a new drug that makes people feel thinner,…

A: Cost function : C(Q) = 200 + 10Q + Q2 Demand function : P(Q) = 82 - Q  A monopolist optimizes its…