The ability of a commercial bank to increase the money supply is limited by the
A) availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements.
B) demand of the public for liquidity.
C) eligibility of the bank for currency drafts and its ratio of M2 to M1.
D) willingness of customers to withdraw currency for circulation.
A
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The above figure shows the market for the three moving companies in a small nation
If the movers act as perfect competitors, what is the price per mile and the number of miles per year? If the movers collude and act as a single monopoly, what is the price per mile and the number of lines per year?
_____ is the lack of satisfaction yielded after consuming too much of the same product
a. Ordinal utility b. Disutility c. Total utility d. Marginal utility e. Cardinal utility
Long-run equilibrium will occur at the price level at which
A) the aggregate demand and long-run aggregate supply curves intersect.
B) the short-run aggregate supply and long-run aggregate supply curves intersect.
C) the long-run aggregate demand and short-run aggregate supply curves intersect.
D) the aggregate demand and short-run aggregate supply curves intersect.
The problems created by price controls become greatest as time goes by when:
A. demand becomes more in elastic and supply becomes more elastic. B. demand and supply become more inelastic. C. demand and supply become more elastic. D. supply becomes more inelastic and demand becomes more elastic.