A monopoly is a market model in which just one firm sells a product with no close substitutes
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1000 and total assets of $10,000, the amount of desired reserves is
A) $9,000. B) $900. C) $100. D) $1,000. E) $1,100.
A deep recession hits the world economy, and real GDP in the rest of the world decreases. In the United States,
A) aggregate supply increases and aggregate demand decreases, so the effect on the price level is uncertain. B) aggregate supply and aggregate demand both decrease, and the price level rises. C) aggregate supply and aggregate demand both increase, and the price level rises. D) aggregate supply decreases while aggregate demand does not change, and the price level rises. E) aggregate demand decreases while aggregate supply does not change, and the price level falls.
Resource markets are like any other market in that
a. the increase in quantity supplied in response to a higher price will generally be greater in the long run than in the short run. b. the amount demanded of a resource is inversely related to its price. c. higher prices encourage people to search for substitutes. d. all of the above are correct.
Do you think it is correct policy that the federal government is not required to finance all of its expenditures with tax revenues and is allowed to borrow? What are the implications of this policy?
What will be an ideal response?