If the reserve ratio is 4 percent, the money multiplier is equal to 25
Indicate whether the statement is true or false
TRUE
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In the short run
A) all inputs are variable. B) all firms experience increasing returns to scale. C) some firms experience economies of scale. D) no firm experiences economies of scale.
All of the following conditions must exist for the median-voter theorem to hold except that:
A. there is a single one-dimensional policy question. B. candidates win by majority vote. C. there are only two candidates. D. the policy being voted on must be uncontroversial.
In order for a market to be classified as an oligopoly,
a. there must be fewer than 10 firms b. the four largest firms must have 90 percent of the market c. there must be fewer than 5 firms d. the firms must be strategically interacting e. the firms must be strategically independent
The controversy over affirmative action illustrates the
A. trade-off between equality and efficiency. B. incentive problems created by transfer payments. C. incentive problems created by personal income taxes. D. trade-off between progressive and regressive taxes.