Required reserves are
A. equal to total reserves minus excess reserves.
B. equal to total reserves minus checkable deposits.
C. always less than total reserves.
D. determined by multiplying the level of checkable deposits times the discount rate.
A. equal to total reserves minus excess reserves.
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Consider Figure 6.4 in your textbook, as indicated below. If the equation for the demand curve were P = 10 - Q and MC constant at 4,
(a) Find the competitive level of output and price.
(b) Find the marginal revenue and derive the rent seeking cartel's of output and price.
(c) How much rent is being raised?
Pure public goods involve positive externalities.
A. True B. False C. Uncertain
An MPC value of less than 1.0 indicates that as income increases consumption
A. also increases, and by more than the increase in income. B. will go in the opposite direction and decrease. C. also increases, though not as much as income. D. also increases, and at the same rate as the increase in income.
How did the Celler-Kefauver Act (CK Act) affect the nation's antitrust policy?
A. The CK Act strengthened the nation's approach to merger enforcement by amending the Clayton Act. Under the CK Act, purchasing assets with the cash of another company was a potential antitrust violation. B. The CK Act strengthened the nation's approach to merger enforcement by making all conglomerate mergers illegal. C. The CK Act strengthened the nation's policy toward predatory pricing by clarifying that pricing lower than marginal cost was an antitrust violation. D. The CK Act weakened the nation's policy by creating a loophole in the Clayton Act making mergers easier.