Assume the First Bank of Townsville makes a loan of $2,500. This loan will
A) increase the First Bank of Townville's liabilities at the Fed.
B) have no change on the quantity of money, just its composition.
C) increase the First Bank of Townville's reserves.
D) increase the quantity of money initially by $2,500.
E) decrease the quantity of money initially by $2,500.
D
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A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
A. inventory stocks are building up. B. inventory stocks are being depleted. C. their profits are negative. D. many of their workers have little to do.
Refer to Figure 15-6. The monopolist's total cost is
A) $1,116. B) $1,240. C) $1,660. D) $1,726.40.
As McDonald's expanded globally, it was able to achieve:
A) economies of scope. B) economies of scale. C) diseconomies of scale. D) none of the above.
Entry continues as long as
A) economic profits are zero. B) accounting profits are positive. C) accounting profits are positive and economic profits are negative. D) economic profits are positive.