M1 is the most liquid form of money.
Answer the following statement true (T) or false (F)
True
M1 is the most liquid form of money, followed by M2.
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When does the Fed lend through discount windows?
What will be an ideal response?
The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded
A) 2 percent B) 5 percent C) 10 percent D) 50 percent
A firm typically achieves its position as a monopolist as a result of
A) a small market and a constant average cost. B) a downward sloping demand for the product. C) barriers to entry. D) the absence of long-run profits in an industry.
What best explains the pattern of bank collapses in the US?
a. The vast majority of banks closed early in the decade and the closing dropped significantly in the latter half of the decade. b. Banks collapsed consistently throughout the 1930s. c. The failure rate was relatively low early in the decade and grew steadily throughout the period.