The size of the effect of a given deposit of cash into a demand deposit account on the money supply is smaller:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
a
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If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
The behavior of historical cost curves says nothing about the cost advantages or disadvantages of a single large firm.
Answer the following statement true (T) or false (F)
In order for a production possibilities curve to shift to the right, which of the following must occur?
A) government involvement B) increasing consumer wants C) economic growth D) reductions in the supply of resources
To obtain the market price of a good from its factor cost one must:
(a) Add indirect taxes and subtract subsidies. (b) Subtract indirect taxes and add subsidies. (c) Subtract both indirect taxes and subsidies. (d) Correctly cost all of the inputs used minus subsidies.