If a good is Giffen and its price increases,
a. the income effect will be positive and the substitution effect will be positive.
b. the income effect will be negative and the substitution effect will be negative.
c. the income effect will be positive and the substitution effect will be negative.
d. the income effect will be negative and the substitution effect will be positive.
c
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The takeover process does not use up capital; it merely redistributes it
a. True b. False Indicate whether the statement is true or false
Suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $50,000. B. $500,000. C. $5,000,000. D. $10,000.
One reason a country might choose a flexible exchange rate
A) to reduce inflation and promote a stable economic environment.
B) to reduce the impact of economic shocks.
C) to rid themselves of the pressure of monetary management.
D) that it is easier for all citizens to understand.
As a monopolist increases its output, it finds that its total revenue at first increases, and that after some output level is reached, its total revenue begins to decrease.
Answer the following statement true (T) or false (F)