In a fractional-reserve banking system, a decrease in reserve requirements
a. increases both the money multiplier and the money supply.
b. decreases both the money multiplier and the money supply.
c. increases the money multiplier, but decreases the money supply.
d. decreases the money multiplier, but increases the money supply.
a
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The above figure shows the cost curves for a competitive firm. If the firm is to earn economic profit, price must exceed
A) $0. B) $5. C) $10. D) $11.
An estimation technique that begins with an initial approximation, which is then modified in accordance with additional information, is known as:
A. the representative heuristic. B. status quo bias. C. regression to the mean. D. anchoring and adjustment.
Owners of a corporation share in the profits of the firm
A) by selling any bonds or stocks owned and realizing a capital gain. B) through coupon payments on that firm's bonds. C) through dividend payments on shares of that firm's stock. D) by raising the interest rate on bonds.
If the number of wine producers decreases
A) the supply of wine increases. B) the supply of wine decreases. C) the demand for wine decreases. D) the demand for wine increases.