Fixed costs are those costs which are:
A. Zero if the firm produces no output in the short run
B. Unchanging through time
C. Independent of the rate of output
D. Implicit to a competitive firm
C. Independent of the rate of output
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Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then Odyssey National can increase the money supply by:
a. $900. b. $910. c. $1,000. d. $9,000. e. $10,000.
The relationship between money growth rates and inflation between 1982 and 2010 helps explain why, by the 1990s, most economists had
a. adopted the monetarist explanation of inflation. b. adopted a rules-only approach to monetary policy. c. become more convinced of the monetary causes of inflation. d. abandoned monetarism as the primary explanation of inflation.
Based on the table, the multiplier in this case is ______.
a. 2/3
b. 3
c. 10 billion
d. 30 billion
Advertising can impede economic efficiency when it:
A. increases entry barriers. B. reduces brand loyalty. C. enables firms to achieve substantial economies of scale. D. increases consumer awareness of substitute products.