The efficiency of the payments’ mechanism affects
A. the speed with which money can be exchanged for other assets.
B. how quickly individual loan applications will be approved.
C. how slowly individuals deplete their cash balances.
D. the speed with which financial institutions can process checks and other funds.
Answer: D
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product00102002060030720408205090060980The marginal product of the 30th input item is
A. 24. B. 120. C. 12. D. 200.
If the MPC is 0.8 and net taxes increase by $100 billion, what is the effect on equilibrium output?
a. There is no effect; equilibrium output is not affected by a change in net taxes. b. Equilibrium output will fall by $80 billion. c. Equilibrium output will fall by $125 billion. d. Equilibrium output will fall by $400 billion. e. Equilibrium output will fall by $500 billion.
A credence good is a product
A. that emphasizes the features of its product. B. that an individual must consume before the quality can be established. C. with characteristics that enable an individual to evaluate the product's quality in advance of a purchase. D. with qualities that consumers lack the expertise to assess without assistance.