Which of the following is not an idea advocated by Adam Smith?
a. Businesspersons conspiring to fix prices are a threat to the price system.
b. Pursuit of private self interest with an invisible hand is the best way to promote the public interest.
c. Government should control the economy.
d. The government should provide for national defense and little else.
c
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According to the profit-maximization goal, the firm should attempt to maximize short-run profits since there is too much uncertainty associated with long-run profits
a. true b. false
Which of the following financial investments is highly liquid and has very little risk but offers a low rate of return?
a. Savings account b. Mutual fund c. Certificate of deposit d. Treasury bond
If the monetary authorities want to lower the size of the monetary multiplier, they should
A. lower the legal reserve ratio. B. raise the legal reserve ratio. C. take actions to increase bank reserves. D. take none of these actions.
When the euro rose relative to the dollar in the early 2000s, it:
A. discouraged European imports and exports B. encouraged European imports and discouraged European exports. C. encouraged European imports and exports. D. discouraged European imports and encouraged European exports.