If the required reserve ratio is 10 percent and the Fed buys a $5,000 security from a depository institution, the money supply:
a. increases by $15,000.
b. increases by $5,000
c. decreases by $5,000.
d. increases by $50,000.
e. decreases by $50,000.
d
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Which of the following are complementary resources?
a. margarine and butter used in baking b. sugar and honey used in cereals c. a teacher and a chalkboard d. rye and wheat bread used in a sandwich shop e. a typewriter and a personal computer used in an office
If the interest rate rises, the present value of property rises because the return is now higher
Indicate whether the statement is true or false
At the optimal or efficient level of an activity, the activity's marginal benefit must
A) be zero. B) be greater than zero. C) equal the marginal cost of the activity. D) exceed the marginal cost of the activity.
The monopolist and the perfect competitor are similar in that
A. both operate at peak efficiency. B. both can make a profit in the long run. C. both types of markets have no barriers to entry. D. both try to maximize profits.