Transactions costs refer to
A) the cost of transporting goods from one destination to another.
B) the raw material cost of production.
C) the costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services.
D) the implicit costs of production.
C
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In the United States, commercial banks supply about ________% of total credit to nonfinancial businesses
A) 20 B) 75 C) 50 D) 90
During a boom expansionary economy, public assistance payments and unemployment compensation payments automatically decrease while income taxes automatically increase. Which of the following best describes the effect of these changes on aggregate demand? a. Aggregate demand will be less than it would be without these automatic stabilizers. b. Aggregate demand will be the same as it was before
the expansion. c. Aggregate demand will be less than it was before the expansion. d. none of the above
Which of the following will cause the demand for loanable funds to increase?
A. Households increase their rate of savings. B. The expected rate of return increases. C. The cost of funds increases. D. The expected profitability of a project declines.
Explain at least three ways that self-interest can motivate a selfless act.
What will be an ideal response?