Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's annual explicit cost of capital is

Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $45, and average total cost is $67 . To maximize his profit or minimize his loss, Claude should

a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price

Which of the following does not appear on the asset side of a bank's balance sheet?

A. required reserves B. checkable deposits C. loans D. excess reserves