The equilibrium price of credit card services is
A) the real quantity of money.
B) determined only by the demand for credit card services.
C) the nominal interest rate.
D) equal to the average cost of credit card services.
C
You might also like to view...
A commercial bank like Comerica creates money by
A) making loans. B) selling corporate bonds. C) earning profits. D) printing paper money.
In the short run, a perfectly competitive firm determines its profit-maximizing or loss-minimizing output by
a. producing at full capacity. b. equating price and marginal revenue. c. equating marginal revenue and marginal cost. d. equating average revenue and average cost.
The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price. B) correct for pollution while keeping the price of the good the same as before the correction. C) reward people producing externalities. D) encourage producers to keep the quantity produced the same while lowering the price.
When a bank makes loans with excess reserves, it
a. creates money. b. destroys money. c. alters the composition of M1. d. leaves the money supply unchanged.