If the current margin is greater than the desired margin, the firm should
a. Increase price
b. Decrease price
c. Not change the price
d. Marginal revenue and marginal cost are both zero
b
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The multiple by which the commercial banking system can expand the supply of money is equal to the
A. reciprocal of the federal funds rate. B. ratio of actual reserves to required reserves. C. reciprocal of the reserve ratio. D. ratio of required reserves to actual reserves.
Refer to the table above. If the market price of wine is $4/bottle, and the market demand for wine is 65 bottles, Sandra's demand for wine is:
A) 18 bottles. B) 40 bottles. C) 47 bottles. D) 111 bottles.
At levels of GDP above full employment, the federal budget would usually be in a deficit position
a. True b. False Indicate whether the statement is true or false
Refer to the given table. The total change in consumption resulting from the initial change in investment will
A. $100.
B. $96.
C. $180.
D. $80.