It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S. firms. If this is true, ceteris paribus, we would conclude that the
A) depreciation rate of capital does not change, but the user cost of capital increases.
B) depreciation rate of capital increases, but the user cost of capital decreases.
C) depreciation rate of capital increases, and the user cost of capital increases.
D) U.S. interest rate is too high, preventing American manufacturers from adopting new technologies.
C
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A person has a comparative advantage in an activity if that person can
A) produce more goods in a given amount of time than another person. B) produce fewer goods in a given amount of time than another person. C) perform the activity at a lower opportunity cost than anyone else. D) perform that activity at a higher opportunity cost than anyone else.
In September 2007, Regions Bank held $3 million in reserves against M1 deposits and made $83 million in loans. Between September 2007 and September 2008, deposits decreased from $114 million to $95 million
If Regions Bank wants to maintain its desired reserve ratio in 2008, it will A) increase its reserves. B) definitely make more loans. C) cannot make more loans. D) decrease its reserves.