If Q represents a firm's level of output, W represents the wage paid to labor (L) and R is the cost of capital (K), then which of the following represents the firm's isocost line?
A. C = FC + VC(Q)
B. C = FC(Q) + VC(Q)
C. C = WL + RK
D. C = (W + R)Q
C. C = WL + RK
Economics
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a. True b. False
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Suppose a banking system has a required reserve ratio of 0.10. How much can the money supply increase in response to a $500 increase in excess reserves for the whole banking system?
A. $4,500. B. $5,000. C. $50. D. $500.
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