What is the money multiplier and what factors determine its size?
What will be an ideal response?
The money multiplier represents the effect of a given change in high powered money on the money supply. The money multiplier will be affected by changes in two parameters: c and ?. An increase in either parameter will cause a reduction in the money multiplier.
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If significant economies of scale are present, large firms will be much more efficient producers than small firms.
Answer the following statement true (T) or false (F)
A perfectly competitive firm faces a market clearing price of $150 per unit. Average variable costs are at the minimum value of $200 per unit at an output rate of 100 units. Marginal cost equals $150 per unit at an output rate of 75 units
It can be concluded that the short-run profit-maximizing output rate is A) 75 units, at which the firm earns zero economic profits per unit sold. B) 75 units, at which the firm earns $50 in economic profits per unit sold. C) 100 units, because marginal cost equals average variable costs. D) 0 units, because price is less than average variable costs.
The statement "American workers are lazy" is an example of positive economic analysis
a. True b. False Indicate whether the statement is true or false
A larger crowding-out effect:
a. increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. b. increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment. c. decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. d. decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.