An increase in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to fall, which increases the quantity of real loanable funds supplied.
b. Preferred asset ratio for customary reserves (U/D) to rise, which increases the quantity of real loanable funds supplied.
c. Preferred asset ratio for near money (N/D) to fall, which increases the quantity of real loanable funds supplied.
e. None of the above.
.A
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $35, The Waco Kid will produce
A) 1 hat. B) 2 hats. C) 3 hats. D) 4 hats.
Would a tax on prescriptions drugs be more likely to be progressive or regressive? Why?
How is inflation typically measured? What are the different types of inflation? Why is it important to know which type of inflation we may be experiencing?
What will be an ideal response?
A government-inhibited good is one that
A. the political process has determined is socially undesirable. B. freely competitive markets have determined is socially desirable. C. the political process has determined is socially desirable. D. we want to encourage the consumption of.