In order for the banking system to expand the money supply with a money multiplier effect, all of the money loaned out
a. has to have been demand deposits at some bank
b. has to stay in one bank
c. by one bank has to be deposited in the same bank
d. has to be repaid before the multiplier process can work
e. has to equal the amount of legal reserves for the banking system
A
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An investment demand curve shows the varying amounts of investment that would be undertaken at various levels of
A. personal saving. B. the real interest rate. C. the average price in the economy. D. consumer spending.
In general, a bank that held excess reserves would earn lower profits as a result
a. True b. False Indicate whether the statement is true or false
A firm in short-run equilibrium always earns positive profits if
a. AC > P > AVC. b. AR > AC. c. MR = MC. d. AC > MC.
Markets characterized by declining long-run average costs are often referred to as
A. natural monopolies. B. diseconomies of scale. C. perfect competition. D. nonprofit organizations.