Banks in the United States may create new money equal to their amount of required reserves
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Unlike a perfectly competitive firm, a monopolistic competitor does not have a short-run shut-down point
Indicate whether the statement is true or false
Dumping is considered a practice that seriously harms domestic producers because
A) the quality of the dumped good is superior to that of the importing country. B) it allows the exporting country to use poor quality materials. C) it establishes a price that cannot be met by domestic producers. D) it discriminates between wealthy and poor countries.
Winners of the Jackson City Lottery prize of $10 million are paid $1 million per year for ten years. Paid out in this form, this prize is
a. worth less than $10 million because the payment is deferred over time b. worth more than $10 million because the payments remain constant for the next ten years c. worth more than $10 million because the tax burden on the smaller payments is less d. worth exactly $10 million e. not worth $10 million only if the interest rate is positive
Long-run equilibrium occurs when which of the following occur?
a. the actual price level equals the expected price level b. real GDP supplied equals potential output c. real GDP supplied equals real GDP demanded d. all of the above must occur to reach long-run equilibrium