Which of the following will limit the money creation process to an amount less than the potential amount?
What will be an ideal response?
Increase in currency holdings by the public.
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Which of the following statements is true?
A) A monopolist faces an upward sloping demand curve. B) A perfectly competitive firm faces an upward sloping demand curve. C) A monopolist can increase the price of its product and not lose all of its business. D) A perfectly competitive firm can increase the price of its product without losing its business.
A risk-averse manager is hired to run a firm for shareholders. If shareholders cannot observe the manager's effort, which would be the best employment contract?
a. a high-powered incentive contract to elicit maximum effort. b. a fixed salary. c. a moderately powered incentive scheme that elicits some effort without exposing the manager to too much risk. d. an incentive scheme that provides maximum incentives and maximum insurance.
If substantial economies of scale exist, setting price = MC will
a. result in a loss for the firm b. result in an excess profit earned c. yield a normal profit d. cause the firm to produce more than the optimal number of goods e. cause the firm to charge lower than the optimal price
The total market value of all goods and services produced by factors of production within a nation is called
A. gross domestic income. B. value added. C. gross output. D. gross domestic product.