Which of the following is an accurate statement about the supply of money?
a. The money supply is almost completely elastic.
b. Banks will try to maximize profits even if their money supply is below the desired level.
c. The money supply is regulated by the central bank.
d. The money supply curve is horizontal, other things being equal.
c. The money supply is regulated by the central bank.
You might also like to view...
Assume that the world price of Commodity X is $9 per unit while its domestic price is $8, and the marginal cost of production is $6 per unit. If the government imposes a price ceiling of $7 on domestic output:
a. the import of Commodity X from the world market would stop. b. the world price of Commodity X would decline. c. a surplus of Commodity X would accumulate in the domestic market. d. a shortage of Commodity X would be observed in the domestic market.
In game theory a listing of the rewards or punishments that each player will receive for each possible combination of strategies is called
a. the marginal strategy schedule b. the payoff matrix c. strategic planning d. the input-output matrix e. the game listing payoff
The historical record indicates that foreign aid has
a. played a major role in helping formerly poor countries grow rapidly and achieve high income levels. b. re-enforced corrupt governments and policies that stifle productive activities. c. helped poor countries escape counterproductive policies imposed by authoritarian political leaders. d. promoted economic growth, but slowed the movement toward political democracy.
The English word that comes from the Greek word for "one who manages a household" is
a. market. b. consumer. c. producer. d. economy.