The relationship between the MPS and the MPC is such that:
a. MPC - MPS = 1
b. MPS/MPC = 1
c. MPS + MPC = 1
d. 1 - MPC = MPS
d. 1 - MPC = MPS
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Mr. Retchnik keeps $10,000 in his firm's checking account to meet day-to-day business needs; this illustrates his firm's ________ demand for money.
Fill in the blank(s) with the appropriate word(s).
Which of the following explains why private employees (more frequently than public employees) tend be in defined contribution program?
A. They tend to fall for Ponzi schemes. B. They have well-funded private savings plans. C. They tend to begin and end their career with the same employer. D. They tend to move from employer to employer.
Firms in a perfectly competitive industry
A. will earn an economic profit of zero in the long run. B. will always earn a profit in the short run. C. may earn either an economic profit or a loss in the long run. D. will always earn an economic profit in the long run.
Which of the following statements about dollarization is accurate?
A. Dollarization enables a country to counteract more effectively adverse foreign shocks without otherwise disrupting the country's economy. B. A country that dollarizes gains interest income on what had been the country's holdings of international reserve assets. C. Dollarization decreases exchange-rate risks by removing the risks of speculative attacks on its currency. D. A country that chooses to dollarize will enhance its control over its monetary policy.