The higher the reserve requirement, the lower the money multiplier.
Answer the following statement true (T) or false (F)
True
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An indifference curve shows _____
a. the relationship between total and marginal utility b. the relationship between the quantity of a good and the maximum attainable satisfaction c. the various combinations of two goods that give a consumer the same amount of satisfaction d. the relationship between the price and quantity of a good that a consumer is able to purchase e. that the quantities of a good that give a consumer maximum satisfaction are directly related to price
The granting of small, unsecured loans to small businesses and entrepreneurs is known as
A. Growth finance. B. Long-term finance. C. Microfinance. D. Extreme finance.
Why does a sports car cost more than a truck?
A. because truck manufacturers know that their customers have relatively low incomes B. because sports car manufacturers are greedier than truck manufacturers C. because more scarce resources are required to produce a sports car than to produce a truck D. because sports cars are priced higher in order to make them attractive as status symbols
Suppose that the cross price elasticity of demand between good A and good B is -1.2. This indicates that the two goods are
A. complements. B. substitutes. C. both inferior. D. completely unrelated in the minds of consumers.