Which of the following is an advantage of having centralized ownership and responsibility for capital goods?
a. It allows firms to avoid the depreciation cost of capital equipment.
b. It increases the capital per worker ratio.
c. It spreads the investment risk associated with acquisition of capital goods.
d. It resolves the problem of continuity.
D
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When the Fed buys a $10,000 bond from a bond dealer
A) reserves of the banking system remain unchanged, but the money supply increases by $10,000. B) reserves of the banking system increase by $10,000, but the money supply will only be able to increase by something less than this amount. C) reserves of the banking system increase by $10,000, but the money supply can increase by more than $10,000. D) reserves of the banking system remain unchanged, but the money supply decreases by $10,000.
If firms increase investment, the aggregate expenditures function will shift upward, other things being equal
a. True b. False Indicate whether the statement is true or false
In highly concentrated markets, an increase in the HHI of more than ________ raises potential concerns.
A. 10 points B. 50 points C. 5 points D. 30 points
Why can car insurance companies charge higher auto rates for new customers than for established customers, all else held constant?
What will be an ideal response?