Banks are able to create money only when
a. interest rates are above 2%.
b. the Fed sells U.S. government bonds.
c. the reserve ratio is 100%.
d. only a fraction of deposits are held in reserve.
d
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Government purchases include spending on ________.
A. government purchases of final goods only B. government purchases of final goods, government salaries, and transfer payments C. government salaries only D. government purchases of final goods and government salaries
List the major reasons, other than to stimulate the economy, that the government spends money. Provide a rationale for each of these types of expenditures
Random walk theory says
a. throwing darts will pick winners. b. random selection of stocks will do as well as other methods of stock choice. c. speculation can't lose if you wait long enough. d. investment in stocks can't be profitable.
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.
A. profit; $30 B. loss; $2 C. profit; $2 D. loss; $10