People hold money as an asset rather than other assets because
A) it holds its value. B) there is no cost to holding money as an asset.
C) it grows in value. D) it is highly liquid.
D
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Firms in monopolistic competition charge prices that are ________ those of the other firms in the market
A) close to B) very different from C) the same as D) completely unrelated to
If both the demand for and the supply of computers are increasing, which of the following statements is TRUE?
A) The consumer should buy a computer now since the price will be higher in the future. B) The consumer should wait and buy a computer later since the price will be lower in the future. C) The price of a computer will be the same in the future as it is now. D) It is impossible to know, given only this information, whether the prices of computers will go up or down in the future.
Thomas Edison once said that he began making real profit on light bulbs when he dumped his surplus on the European market at less than the "cost of production." From this we can deduce Edison
a. did not want to maximize profit. b. understood the difference between marginal and average cost. c. had a different definition of the term "profit." d. did not understand the difference between fixed and variable cost.
Suppose the federal funds rate is 5 percent. If the Fed decides to increase the target for the federal funds rate from 5 percent to 6 percent, it could take:
A. an offensive action and reduce reserve requirements. B. an offensive action and raise reserve requirements. C. a defensive action and raise reserve requirements. D. a defensive action and reduce reserve requirements.