The larger the MPC, the smaller the MPS.
Answer the following statement true (T) or false (F)
True
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For a depository institution, reserves are:
a. assets on the balance sheet. b. loans to individuals and businesses. c. borrowings from the central bank. d. liabilities it owes to customers. e. checkable deposits.
Which of the following is true about perfect competition?
a. Each firm faces a downward-sloping demand curve. b. Each firm must face a horizontal demand curve. c. Firms are price-makers. d. Marginal cost equals average cost. e. Firms can increase sales by lowering their price.
The case study of segregated street cars in southern cities illustrates which of the following?
a. Streetcar owners opposed segregation laws primarily because they were concerned with civil rights. b. Segregation laws were supported by both local business owners and patrons. c. Firms usually care more about maximizing profits than discriminating against certain customers. d. Laws passed by the government cannot reduce discrimination.
Modern monetarists believe that
A. the market system is inherently self-stabilizing. B. the market system may be in equilibrium below full employment. C. in the long run, increases in the money supply translate into proportionally higher levels of real income. D. increases in government expenditures will drive a depressed economy rapidly toward full employment.