Depository institution create liquidity when they
A) buy assets that are liquid.
B) borrow short and lend long.
C) have liabilities that are illiquid.
D) borrow long and lend short.
B
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One reason the demand curve slopes ________ is that as prices fall ________.
A. upward; fewer people find that the price is now less than their reservation price. B. downward; fewer people find that the price is now less than their reservation price. C. downward; more people find that the price is now less than their reservation price. D. upward; more people find that the price is now less than their reservation price.
Laura's team can complete 15 reports and 5 presentations in a day. Albert can motivate his team to complete 12 reports in a day with 10 presentations. Suppose the boss needs 30 reports with 20 presentations completed during a particular day. Assigning the extra presentations to Laura's team would:
a. lead to an efficient outcome. b. push the production level inside the production set. c. enhance the production level along the production set. d. increase the chances of achieving the target.
Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label RGDP* for the macroeconomic equilibrium level of Real Gross Domestic Product? 
A. Box 1 B. Box 5 C. Box 2 D. Box 6
In order for a production possibilities curve to shift to the right, which of the following must occur?
A. government involvement B. increasing consumer wants C. reductions in the supply of resources D. economic growth