For every firm that faces a downward-sloping demand curve for its output,
a. marginal cost exceeds marginal revenue at all output levels
b. marginal revenue equals the price of the last unit sold
c. marginal revenue is less than the price of the last unit sold
d. marginal revenue exceeds the price of the last unit sold
e. marginal cost exceeds the price of the last unit sold
C
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According to the rational expectations approach , if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
a. True b. False Indicate whether the statement is true or false
A bank currently has demand deposits of $100,000 . reserves of $30,000 . and loans of $70,000 . If the legal reserve requirement is lowered from 20 percent to 15 percent, this bank can increase its loans by
a. $10,000 b. $15,000 c. $75,000 d. $5,000 e. $ 0
If two partners have a firm with more debt than assets,
a. the business is a success b. the partners are equally liable for the debt c. there is a limit to their personal liability d. each one's liability is limited to the investment made in the business e. the burden of debt is proportionate to the partners' original investment
Liquidity refers to the
a. rapidity with which money flows through the economy. b. ease with which an asset can be converted into cash. c. ease with which banks move funds from checking to savings accounts. d. All of the above are correct.