This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The amount of loans that a bank can create is limited by A) a law enacted by Congress. B) the ... (Read 22 times)

melina_rosy

  • Hero Member
  • *****
  • Posts: 531
on: Jun 29, 2018
The amount of loans that a bank can create is limited by
 
  A) a law enacted by Congress.
  B) the bank's excess reserves.
  C) a directive from the Federal Reserve System, which takes into account the bank's financial stability.
  D) the real interest rate.
  E) the bank's government securities.

Question 2

What type of profit can a firm in monopolistic competition earn in the long run? Explain your answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gcook

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

In the long run, a firm in monopolistic competition can earn only zero economic profit, that is, a normal profit. It will not incur an economic loss in the long run because it will close. It cannot earn a positive economic profit because there are no barriers to entry. So if a firm in monopolistic competition is earning an economic profit, in the long run new firms enter the market, produce a similar product, and decrease the demand for the initial firm's product. Entry continues until the firms earn zero economic profit, so its owners make a normal profit.


melina_rosy

  • Member
  • Posts: 531
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Alternate sites that can be used to create a new opening (-ostomy) in the colon. Alternate sites that can be used to create a new opening (-ostomy) in the colon.
Telomere length is related to the amount of time adults spend in leisure time activity. Source: Ada Telomere length is related to the amount of time adults spend in leisure time activity. Source: Ada
Example of Reconciling a Bank Statement Cont. Example of Reconciling a Bank Statement Cont.
Both the top and bottom pattern have the same frequency. However, the amount of on-time varies. Both the top and bottom pattern have the same frequency. However, the amount of on-time varies.
Scissoring motion to create movement between the metacarpals of the hand. Scissoring motion to create movement between the metacarpals of the hand.
What amount was invested 35 years ago at 7% compounded semiannually if the value of the ... What amount was invested 35 years ago at 7% compounded semiannually if the value of the ...
Video: Appendicitis Animation

For a complete list of videos, visit our video library