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 70 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
Excellent

apple

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

The primary ignition system is used to trigger and therefore create the secondary (high-voltage) ... The primary ignition system is used to trigger and therefore create the secondary (high-voltage) ...
An agglutination inhibition reaction. Commercial kit materials would create an agglutination ... An agglutination inhibition reaction. Commercial kit materials would create an agglutination ...
The West Bank Challenge The West Bank Challenge
Scissoring motion to create movement between the metacarpals of the hand. Scissoring motion to create movement between the metacarpals of the hand.
Minerals are nonrenewable resources in limited supply Minerals are nonrenewable resources in limited supply
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: Hip Animation

For a complete list of videos, visit our video library