Compared to an economy that uses a medium of exchange, in a barter economy

A) transaction costs are higher.
B) transaction costs are lower.
C) liquidity costs are higher.
D) liquidity costs are lower.


A

Economics

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If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show

A) an increase in securities held of $10 million and an increase in bank reserves of $10 million. B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million. C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million. D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.

Economics

An oligopolist that cheats on a collusive agreement by reducing price will quickly be forced out of the industry by its competitors

a. True b. False

Economics

Jonathan is currently enrolled in college full-time; however, he works part-time at a restaurant on weekends to earn some spending cash. Jonathan would be considered:

a) unemployed b) employed c) not in the labor force d) institutionalized

Economics

The aggregate consumption function is C = 100 + 0.6Yd. If income is $1,000 and net taxes are $300, consumption equals

A. 800. B. 700. C. 580. D. 520.

Economics