When you deposit $50 in currency at Old National Bank
A) its assets increase by less than $50 because of reserve requirements.
B) its reserves increase by less than $50 because of reserve requirements.
C) its liabilities increase by $50.
D) its liabilities decrease by $50.
C
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Refer to Table 9-14. The real average hourly earnings for 1965 in 1982-1984 dollars equal
A) $1.28. B) $6.49. C) $8.28. D) $15.45.
A good is nonexcludable if no externalities, either negative or positive, are associated with its production or consumption.
Answer the following statement true (T) or false (F)
When a government has decided on a permanent spending increase, a valid reason to increase borrowing rather than taxes might be to ________
A) to avoid an unnecessary stimulus to aggregate demand B) to shift the burden from domestic taxpayers to foreign bond holders C) to avoid distortions that might reduce long-run aggregate supply D) to avoid an increase in income inequality
When there are barriers to entry, a profit-maximizing firm already in the industry can charge any price it wants, even in the long run
a. True b. False