Each person goes about her daily business seeking to maximize her own self interests. In doing so, she contributes to the welfare of society at large. This is the idea underlying Adam Smith's "invisible hand."

Indicate whether the statement is true or false


TRUE

Economics

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What is a crawling peg and how does it work?

What will be an ideal response?

Economics

The real interest rate, business taxes, expected profits and business confidence, and capacity utilization are embedded in the slope of the investment function

Indicate whether the statement is true or false

Economics

If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to make?

a. $75,000 b. $12,000 c. $1,000 d. $30,000 e. $3,000

Economics

A price elasticity of demand of 5 means that for every 1 percent change in price, the quantity demanded will change in the opposite direction by 5 percent

a. True b. False Indicate whether the statement is true or false

Economics