When the real interest rate increases, banks have an incentive to lend a greater portion of their deposits, which reduces the reserve-deposit ratio in particular, suppose that (휃).휃=0.4―2푟,where is the reserve-deposit ratio and r is the real interest rate. the currency-deposit ratio 휃(푐푟)is 0.4, the price level is fixed at 1.0, and the monetary base is 60. the real quantity of money

Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. the economist proposes the following relationship: p=a x m - p=price level - m=money supply - a=a composite of other factors, including real gdp, that change very slowly over time. how might an economist gather empirical data to test the proposed relationship between money and the price level? an economist would persuade the federal reserve to change the money supply to various levels, and observe the resulting changes in the price level. unlike researchers in the hard sciences, economists cannot study complex relationships using data. economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy. an economist would look for data on past changes in the money supply, and note the resulting changes in the price level

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?

Which of the following statements best describes the results provided by market research? a. market research allows producers to create trends that lead to more sales. b. market research lets producers predict what laws the government is planning to make. c. market research tells producers what consumers want and what they're willing to pay. d. market research producers understand market forces better.