If banks are willing to make loans and consumers and businesses are willing to borrow money, this constrains the money supply.
Answer the following statement true (T) or false (F)
False
When banks make loans and consumers and businesses take out loans, the money supply increases because the amount in transactions accounts increases.
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In the figure above, suppose that $20 is the market equilibrium price. Which area is the consumer surplus?
A) A B) B C) A + B D) B - A E) B รท A
Which of the following is a reason why a firm would not engage in price discrimination?
A) The transactions costs associated with selling the product exceed the price of the product. B) Some firms do not want to violate the law of one price. C) Some firms are not able to segment the market for the products they sell. D) Price discrimination is illegal in some western states and the owners of firms in these states face civil or criminal prosecution if they engage in price discrimination.
When a positive externality exists, the market is said to fail because it overproduces the good associated with the positive externality.
Answer the following statement true (T) or false (F)
The view that taxes should impose as little excess burden as possible and should be shared fairly among the taxpayers is consistent with the view of government ____
a. as a type of club b. as a benevolent despot c. as a constitutional republic d. as a constitutional democracy