In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times
The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of police, "Commerce does very little of what we recommend. They've told our detectives they have no interest in ever putting in the barriers."
It would seem that Commerce Bank would have a strong incentive to install "bandit barriers" to deter robberies. Why wouldn't they do it?
A) The banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers."
B) The banks probably resent any interference from the police department.
C) The banks would rather delay installation of any theft deterring equipment in anticipation of new, lower-cost innovations in the security devices market.
D) The banks are concerned that "bandit barriers" would send the wrong message to customers — that the bank is unsafe.
A
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Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?
a. The labor supply curve will shift to the right. b. Demand for bakers will increase because the MPP of bakers will decrease. c. The quantity supplied of labor will increase because the wage rate will decrease. d. The MRP of bakers will increase. e. The labor supply curve will shift to the left.
What does the Fed do when the initial equilibrium rate is below the target rate?
a. Decrease the price level. b. Increase the price level. c. Decrease the money supply. d. Increase the money supply.