The local community bus service, which is a monopoly, charges $2.00 for a one-way fare. the city council is thinking of raising the fare to $2.50 but expects it to generate less than 25% more revenue. the council has asked for your advice as a student of economics. the council predicts that raising the price by 25% will raise revenues by less than 25%. which of the following is true? choose one: a. the council hasn't taken into account either the output effect or the price effect. b. the council has taken into account the price effect but not the output effect. c. the council has taken into account both the price effect and the output effect. d. the council has taken into account the output effect but not the price effect. part 2 (1 point) therefore, the council has increase in revenue.

Your mother's well-diversified portfolio has an expected return of 12.0% and a beta of 1.20. she is in the process of buying 100 shares of safety corp. at $10 a share and adding it to her portfolio. safety has an expected return of 15.0% and a beta of 2.00. the total value of your current portfolio is $9,000. what will the expected return and beta on the portfolio be after the purchase of the safety stock?

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance