Henry deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:
A. Increased by $2,100
B. Increased by $3,300
C. Increased by $5,400
D. Decreased by $3,300
C. Increased by $5,400
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One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"
Indicate whether the statement is true or false
What is the drawback of forcing a natural monopolist to use a marginal cost pricing rule?
A) No deadweight loss is eliminated. B) The firm will incur an economic loss. C) The gain in consumer surplus will be less than the loss in producer surplus, thus creating additional deadweight loss. D) None of the above answers is correct.
The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:
A. "burning your boats." B. "burning your bridges." C. "friendly fire." D. "putting all your eggs in one basket."
The exchange rate is:
a. the rate at which goods will exchange for each other in the international market. b. the number of units of one currency required in exchange for one unit of another currency. c. set by the International Trade Commission. d. established by the ratio of the values of gold to silver. e. set by each individual country.