If the public decides to hold less currency and more deposits in banks, bank reserves
a. decrease and the money supply eventually decreases.
b. decrease but the money supply does not change.
c. increase and the money supply eventually increases.
d. increase but the money supply does not change.
c
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Which is the largest component of aggregate expenditure?
A) consumption expenditures B) government expenditures C) net export expenditures D) planned investment expenditures
Figure 7-4
Following a rash of airplane bombs, the airlines have been forced to increase security at a cost of $30 million per year. The number of inspectors and machines does not vary with the number of passengers; the airlines must have sufficient staff available to handle the full-capacity load. Which graph in Figure 7-4 best illustrates the impact of the security expenditures?
A. 1 B. 2 C. 3 D. 4
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
a. The development of strong labor unions. b. A sharp increase in the legal minimum wage. c. An increase in expenditures on education and capital investment. d. Rapid growth rate of the money supply.
A special kind of imperfectly competitive market that has only two firms is called
a. a two-tier competitive structure. b. an incidental monopoly. c. a doublet. d. a duopoly.