Businesses hold substantial balances in demand deposits for all of the following reasons EXCEPT:
A) they cannot hold NOW accounts
B) the existence of low transaction costs
C) to maintain liquidity
D) relatively high interest rates
A
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The exploitation of what resource supplied more than half of the increase in mechanical energy in 1860–1910?
(a) Petroleum (b) Water power (c) Anthracite coal (d) Bituminous coal
If the quantity of labor Sam supplies to a job is zero over the realistic range of wages, Sam
a. is either unwilling or unable to perform the job b. has not been hired to do the job c. has not been hired to do the job at the going market wage rate d. is unable to perform the job e. is unwilling to perform the job
The income and living standards of a nation will increase when
a. jobs are protected and total employment expands. b. the prices of goods and services increase. c. the imports of goods and services fall. d. the availability of goods and services that people value increases.
The money multiplier is
A) Assures that excess reserves will be driven to zero. B) The number of times GDP can be increased by expansion of the money supply. C) Is equal to the fractional reserve requirement ratio times total reserves. D) None of the above.