A commercial bank has checkable-deposit liabilities of $500,000, reserves of $150,000, and a required reserve ratio of 20 percent. The amount by which a single commercial bank and the amount by which the banking system can increase loans are respectively:
A. $30,000 and $150,000
B. $50,000 and $250,000
C. $50,000 and $500,000
D. $100,000 and $500,000
B. $50,000 and $250,000
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Although both perfectly competitive and monopolistically competitive firms earn normal profits in the long run, monopolistically competitive firms will not
a. operate where price equals marginal cost b. charge a higher price than firms in perfect competition c. produce a smaller quantity than firms in perfect competition d. produce where price equals average total cost e. exit when demand falls below long-run average costs
Meta-ideas involve
A) the methods of producing ideas. B) persuading others of the validity of one's ideas. C) putting ideas in a form capable of approval in a "yes" or "no" vote. D) the expression of ideas in mathematical form.