Suppose George withdraws $60,000 from his bank. If the reserve ratio is 25 percent, then this transaction will lead to a decrease of ________ in checking account balances
A) $15,000 B) $45,000 C) $90,000 D) $180,000
D
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Positive economic principles are those that:
A. are influenced by political ideology. B. are always correct. C. predict how people will behave. D. indicate how people should behave.
If a firm is in an antitrust court case being accused of monopolizing a product, the firm would hire an economist to show
A) the cross-price elasticity of demand between the firm's good and another is positive. B) the price elasticity of demand for the firm's good is highly inelastic. C) the income elasticity of the firm's good is inferior. D) the cross-price elasticity of demand between the firm's good and another is negative.
What triggers entry in a competitive market? Describe the process that ends further entry
What will be an ideal response?
A weakness of the price system is that it completely fails to take account consumer preferences in the distribution of goods and services.
Answer the following statement true (T) or false (F)