If the reserve ratio is 5 percent, then the money multiplier is approximated to be:
A. 20.
B. 5.
C. 10.
D. 2
A. 20.
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Which of the following could generate economic profits for perfectly competitive firms in the short run, if they initially earn zero economic profits?
A) a fall in demand B) a unit tax on output C) an increase in total fixed costs D) a decrease in input prices
Which auction format generates the most revenue for the seller?
a. First price. b. Second price. c. They generate the same expected revenue. d. Depends on the environment.
In the Utah Pie case, the economic effect of the Supreme Court decision was to:
a. prohibit the merger of two small pie companies. b. encourage competition by ruling that the national competitors had engaged in illegal price discrimination. c. encourage competition by ruling that the national competitors had not engaged in illegal price discrimination. d. discourage competition by national competitors in the Salt Lake City market.
Consumption spending is:
A. negatively related to the overall price level. B. positively related to the overall price level. C. equal to the overall price level. D. not correlated with the overall price level.