When the Federal Reserve decreases the money supply, it generally does so by purchasing bonds
Indicate whether the statement is true or false
FALSE
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Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
A) 0.67. B) 3.33. C) 6.67. D) 30.
The crux of the problem of pollution is
A) a poorly run Environmental Protection Agency. B) greed on the part of consumers. C) greed on the part of producers. D) poorly defined property rights are expensive to enforce.
In the figure below, the value of insurance is $7,000.
A. True
B. False
C. Uncertain
As it relates to corporations, the principal-agent problem is that:
A. the goals of the corporate managers (the principals) may not match the goals of the corporate owners (the agents). B. the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals). C. the federal government (the agent) taxes both corporate profits and the dividends paid to stockholders (the principals). D. it is costly for the corporate owners (the principals) to obtain a corporate charter from government (the agent).