An increase in the MPC, reduces the multiplier.
Answer the following statement true (T) or false (F)
False
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Implicit costs are usually easier to measure than explicit costs
Indicate whether the statement is true or false
Which of the following best describes the services provided by the Federal Reserve?
a. The Federal Reserve provides banking services to commercial banks and other depository institutions but does not provide banking services to the federal government. b. The Federal Reserve does not provide banking services to commercial banks and other depository institutions but provides banking services to the federal government. c. The Federal Reserve provides banking services to commercial banks and other depository institutions and provides banking services to the federal government. d. The Federal Reserve does not provide banking services to commercial banks and other depository institutions and does not provide banking services to the federal government.
If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue
A. the firm should reduce production. B. the firm should expand production. C. price will be at the profit maximizing level. D. sales will be at the profit maximizing level.
Financial intermediaries provide customers with liquidity services. Liquidity services
A) make it easier for customers to conduct transactions. B) allow customers to have a cup of coffee while waiting in the lobby. C) are a result of the asymmetric information problem. D) are another term for asset transformation.