In a system of 100-percent-reserve banking, changes in the money supply depend on the decisions of the Fed as well as the behavior of depositors and bankers
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.
A. net exporter B. producer C. net importer D. importer and exporter
If a monopolist sets a low price to discourage potential competitors from entering the market, it is referred as
A) price skimming. B) predatory pricing. C) penetration pricing. D) limit pricing.
In the short-run macro model, what is the relationship between income and investment spending?
a. It is positive and stable. b. It is positive but unstable. c. It is negative and stable. d. It is negative but unstable. e. There is no relationship between the two variables.
During the period of the 1930s,
A. wages and prices adjusted quickly to changing economic conditions. B. the classical view of the macroeconomy was validated by prevailing economic conditions. C. wages adjusted quickly as expected by Say's law but other prices, especially agricultural prices, did not. D. the sluggish adjustment of the economy caused economists to look at alternatives to the classical model.