If people decide to hold some of their cash and not deposit it, then the:
A. money multiplier overestimates how much money will be created in the economy.
B. money multiplier underestimates how much money will be created in the economy.
C. reserve ratio is not fully functioning, and should be raised.
D. reserve ratio is not fully functioning, and should be lowered.
A. money multiplier overestimates how much money will be created in the economy.
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If you use $500 of currency to make a deposit in a saving deposit
A) M1 decreases, but M2 is unchanged. B) M1 decreases and M2 increases. C) M1 is unchanged, but M2 increases. D) M1 and M2 both increase.
Which of the following characteristics does perfect competition share with monopolistic competition?
a. price-taking firms b. zero long-run economic profit c. homogeneous product d. some barriers to entry e. economies of scale in production
If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States, Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras
a. True b. False Indicate whether the statement is true or false
If we are considering the relationship between two variables and release one of the other- things-equal assumptions, we would expect:
A. the relationship to change from direct to inverse. B. the line representing that relationship on a graph to shift. C. the data points to have a tighter fit to the line representing the relationship. D. the relationship to change from inverse to direct.