Answer:
(a) BJ = AJ
In equilibrium, apples and bananas have the same price.
Jimmy’s consumption bundle must be 3 apples and 3 bananas
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Explanation:
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Answer:
the banks will eventually make new loans totaling 9,000 and the money supply will increase by 10,000
Explanation:
The money multiplier is 1/0.10= 10. If 1,000 new dollars of currency are deposited in the banks, they must hold $100 as required reserves and can lend out $900. Through the money multiplier, loans will increase by $900*10= $9000. The expansion of the money supply is the original deposit + the increase in loans or $1,000+ $9,000= $10,000
Answer:
The correct answer is: an increase; fall; substitutes; decrease; complements; increase.
Explanation:
Technological improvement has lowered the cost of producing cell phone batteries. This reduction in the cost of production will cause the price of cell phone batteries to decline. Since batteries are used as inputs in the cell phone. The reduction in the price of inputs means that the cost of production would decrease. The firms will be able to supply more at the same cost. The supply, as a result, will increase. The supply curve will shift to the right. The price of cell phones will decline.
Cell phones and landlines are substitutes. They can be used in place of each other. A decrease in the price of cell phones would cause the demand for landlines to decrease as the consumers will prefer a cheaper substitute.
The cell phones and applications, however, are use complements. They are used together. So when the price of cell phones decrease and its demand increase, the demand for cell phone applications will increase as well.
Answer: A higher interest rate.
Explanation: Most savings accounts do not have a high interest rate at the moment.
Answer:
0.2 or 20%
Explanation:
The odds of meeting an unhappy person will be the no. of unhappy people divided by the sample size.
=25/125
=1/5
The odds are 1 in every five people is extremely unhappy.
1/5 = 0.2 or 20%