The higher the reserve requirement,
a. the more the money supply can expand.
b. the more interest the bank will earn on its reserve account.
c. the less the money supply can expand.
d. both the more the money supply can expand and the more interest the bank will earn on its reserve account.
c. the less the money supply can expand.
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If four large commercial contractors meet and collude on the bids they are going to submit for a large government road contract, this is an example of ________.
A) bid suppression B) output restrictions C) bid rigging D) market division
A decrease in nominal incomes causes a leftward shift in the short-run aggregate supply curve (SRAS)
a. True b. False Indicate whether the statement is true or false
Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?
A. People stopped investing in homes. B. Consumption decreased. C. Business investment decreased. D. Costs of production increased throughout the economy.
Under a tying contract,
a. the price a buyer must pay for a good is tied to the size of his purchase. b. a customer agrees as a condition of buying a good to purchase one or more additional goods from the same seller. c. a firm agrees to allow members of its competitors' boards of directors to sit on its board. d. a firm agrees to pay an intermediary for having arranged a business deal for the firm.