If cash is deposited into a checking account, the supply of money increases
Indicate whether the statement is true or false
FALSE
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A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. What should this firm do to increase its profit or reduce its losses?
A) The firm should increase its implicit costs. B) The firm should lower its price. C) The firm should decrease its fixed costs. D) The firm should raise its price.
A justification for patents is that without patents consumer surplus would be
A) larger than with the patent. B) zero since the product would not be invented. C) only slightly smaller than with the patent. D) zero since the monopoly would be a revenue maximizer.
In order for a Pareto improvement to occur, someone must suffer a loss so that others may benefit from the improvement
a. True b. False
The constant velocity of money in the quantity equation implies that any increase in the money supply has to lead directly to:
A. a decrease in P. B. an increase in P. C. an increase in V. D. an increase in Y.