Suppose the demand for money and the supply of money increase simultaneously. We can:
What will be an ideal response?
not predict what will happen to interest rates or bond prices.
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Private initiative and financing were most important in
(a) the canal system of transportation. (b) the steamboat system. (c) the railroad system. (d) none of the transportation systems.
A firm that is earning zero economic profit should go out of business.
Answer the following statement true (T) or false (F)
Money market mutual funds: a. offer higher rates of interest than bank checking accounts, but lack check-writing privileges
b. offer higher rates of interest than bank checking accounts and also offer limited check-writing privileges. c. usually pay lower rates of interest than bank checking accounts. d. were originally developed and offered by banks to their customers. e. usually do not offer any check-writing privileges.
Firms operating in competitive markets produce output levels where marginal revenue equals
a. price. b. average revenue. c. total revenue divided by output. d. All of the above are correct.