Advertising is used by firms to increase their price elasticities of demand
Indicate whether the statement is true or false
F
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Several countries in the world have failed to “converge” with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up," in terms of the pillars of economic growth. Are there any special problems facing these countries?
What will be an ideal response?
If fractional reserve banking exists, then:
A. the money multiplier is equal to 1. B. banks need only keep a portion of each deposit on hand. C. lending would be curtailed to nearly zero. D. money cannot be created in the economy through banks.
When a bank receives new deposits, it can make new loans up to the amount of
A) the deposits received. B) the excess reserves generated by the deposits C) the reserves generated by the deposits. D) the required reserves generated by the deposits.
Keynesians identify three principal motives for demanding money. They are the:
A. transactions demand, precautionary demand, and liquidity motive. B. transactions demand, precautionary demand, and convertibility motive. C. transactions demand, speculative demand, and volatility motive. D. transactions demand, speculative demand, and precautionary demand.