If the monetary multiplier is 6, then the reserve requirement must be
A. 0.6.
B. 0.167.
C. 1.67.
D. 0.06.
Answer: B
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Options are contracts that give the purchasers the
A) option to buy or sell an underlying asset. B) obligation to buy or sell an underlying asset. C) right to hold an underlying asset. D) right to switch payment streams.
If a firm has a perfectly elastic demand curve, then:
a. it must be a monopoly firm. b. it can charge any price it desires. c. the firm has significant market power. d. the firm has no market power. e. the firm should shut down.
Choosing to produce at any point within a production possibilities frontier is:
A. inefficient, meaning the society would not be using all its available resources in their best possible uses. B. efficient but not attainable. C. unobtainable, meaning the society cannot produce that combination of goods. D. efficient, meaning the society would be using all its available resources in their best possible uses.