Which of the following essential factors enables commercial banks to create money?
a. Required reserves
b. Excess reserves
c. State and local government securities
d. U.S. government securities
e. Net worth
b
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Discounting or computing present value is a way of comparing dollar values that will appear at different points in time
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. The United States has a larger national output than any other country in the world. B. We have had recessions about every three years since World War II. C. There were no recessions while Ronald Reagan was president. D. None of the statements are true.
An industry with a horizontal long-run supply curve is called a(n) ________ industry.
A. decreasing-cost B. decreasing-profit C. increasing-cost D. constant-cost
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. Suppose that instead of a tax, the government uses standards to achieve the emission reductions, requiring that each company cut its original emissions in half rather than allowing each company to choose emissions based on their costs. Compared to the situation under the tax, Alpha's emissions would
________ and Beta's emissions would ________. A. decrease by 50 tons; decrease by 50 tons B. increase by 25 tons; decrease by 25 tons C. decrease by 25 tons; increase by 25 tons D. increase by 50 tons; decrease by 50 tons