Graphically, a firm's profit is the area of marginal revenue minus the area of marginal cost
a. True
b. False
Indicate whether the statement is true or false
False
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What is an appropriate definition for "securitization"?
A) the repackaging of bank assets into readily marketable forms B) the promise of a secure return on deposits in FDIC-banks C) the simplification of interest-bearing assets into their simplest derivative form D) the unloading of derivative securities in response to a bank run E) the reinforcement of an asset's worth through official certification
You withdraw $100 from your checking account. How does this affect the money supply and the reserves of your bank?
a. The money supply increases, and the reserves of your bank decline. b. Both money supply and the reserves of your bank increase. c. There is no change in the money supply, and the reserves of your bank decline. d. The money supply decreases, and the reserves of your bank increase.
If the U.S. government increases its expenditures (without any change in taxes) and at the same time the Federal Reserve Bank increases the money supply, the AD curve would:
A. become steeper. B. shift to the left. C. become flatter. D. shift to the right.
Frictional and structural unemployment both exist
A. when the economy is in long-run equilibrium. B. only when the economy is in recession. C. when inflation becomes very high. D. only when the economy is at the peak of the business cycle.