Banks can expand the nation’s money supply by
a) issuing credit cards
b) paying interest on deposits
c) lending out excess reserves
d) cashing checks
e) selling life insurance
c) lending out excess reserves
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Other things equal, an increase in transfer payments will ________ consumption expenditures, which leads to ________ in output and employment
A) increase; an increase B) increase; a decrease C) decrease; an increase D) decrease; a decrease
You are an analyst with a pee firm that makes DRAM memory chips. You must manufacture the chips before you know what the demand will be. Based on the below figure, if the demand is high with an 40% probability and low with a rfectly competitiv60% probability, the expected marginal revenue for a chip is
A) $1.00.
B) $2.00.
C) $1.80.
D) None of the above answers is correct.
The number of workers hired by a monopsonist that is facing a union is
a. equal to the competitive labor market number of workers b. greater than the competitive labor market number of workers c. greater than the number of workers if the monopsonist were not facing a union d. less than the number of workers if the monopsonist were not facing a union e. the same as the number of workers if the monopsonist were not facing a union
An externality exists whenever
a. the economy cannot benefit from government intervention. b. markets are not able to reach equilibrium. c. a firm sells its product in a foreign market. d. Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence.