Banks are different from other financial intermediaries because
A) banks receive funds and make loans.
B) some of a bank's deposits are money.
C) banks can conduct open market operations on their own.
D) banks do not need to hold reserves against their deposits.
E) banks are open longer hours.
B
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The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established
A) the government must intervene to eliminate any externalities in the market. B) private transactions are efficient. C) there will be no pollution. D) Both answers B and C are correct.
While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes
Indicate whether the statement is true or false
Is the Taylor rule of greater use to activist or to nonactivist policy makers?
What will be an ideal response?
The difference between economies of scale and diseconomies of scale is that economies of scale ______, whereas diseconomies of scale ______.
a. are cost advantages experienced by large companies; are the benefits of remaining a small business b. give the company an advantage over smaller competitors; are problems that come with growth c. are advantages that affect a firm’s production in the short run; are experienced over the long run d. are profits realized when the market price of outputs rises; are losses suffered when prices decline