Profit functions are homogeneous of degree zero.
Answer the following statement true (T) or false (F)
False
Rationale: They are homogeneous of degree 1
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Checkable deposits are money because
A) they are protected by the Federal Reserve. B) they are guaranteed by banks. C) checks bounce when there are not enough funds to cash them. D) they can be converted into currency on demand and are used directly as a means of payment. E) only banks and other financial institutions can offer them.
Define what is meant by the period known as the short run
What will be an ideal response?
The demand for a good with many substitutes is: a. relatively elastic
b. relatively inelastic. c. perfectly inelastic. d. unit elastic.
Suppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401(k) and 403(b) tax-deferred retirement accounts?
a. the interest rate and quantity of loanable funds would increase b. the interest rate and quantity of loanable funds would decrease. c. the interest rate would increase and the quantity of loanable funds would decrease. d. the interest rate would decrease and the quantity of loanable funds would increase.