When people donate money to a charity, they behave
A) rationally if the act gives them satisfaction.
B) irrationally because the act does not benefit anyone.
C) in an unpredictable manner because the act involves no incentive.
D) in a way that only makes themselves worse off.
Answer: A
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Funds are channeled from savers to borrowers directly through ________ and indirectly through ________
A) financial markets; financial intermediaries B) financial intermediaries; financial markets C) main banks; branches D) brokers;' agents
Marginal utility is _____
a. always greater than total utility b. utility that is not as good as normal utility c. the extra utility derived from consuming one additional unit of a good or service d. always positive e. not related to total utility
When the required reserve ratio is changed,
A. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged. B. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed. C. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the required reserve ratio. D. the size of the money multiplier and the amount of excess reserves change in the same direction as the required reserve ratio.
In a partnership, debts accumulated by one partner
A) are the responsibility of that partner only. B) are the responsibility of the other partners as well. C) are the responsibility of all the employees of the partnership, regardless of whether those employees are partners. D) are the responsibility of the other partners only up to the amount each partner initially invested in the partnership.