A currency drain ________ the amount of bank reserves available to banks to make loans because ________
A) reduces; people are holding more money outside of the banks
B) increases; people are holding less money outside of the banks
C) reduces; people are holding less money outside of the banks
D) reduces the monetary base; people are holding more money outside of the banks
E) reduces; people are holding onto the money the banks could have borrowed from the Fed
A
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Accelerated depreciation laws may increase firms' investment in equipment because:
a. machines will wear out more rapidly. b. profits will be increased. c. the rental rate on capital will be reduced. d. the price of machines will fall.
Which of the following definitions of the money supply is the least liquid?
a. M1 b. M2 c. M3 d. L
Liberalism is the political philosophy espoused by
a. Robert Nozick. b. John Stuart Mill. c. John Rawls. d. Jeremy Bentham.
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A) prevent the entry of other firms into the market for its product. B) induce the entry of other firms into the market for its product. C) avoid earning negative economic profits in the short run. D) always earn zero economic profits.