The money supply will grow even larger through deposit creation when

A. People decide to use cash instead of checks for transactions.
B. Interest rates rise, causing people to move money out of banks and into bonds.
C. Banks stop making new loans because they are too risky.
D. Consumers, businesses, and government increasing their borrowing.


Answer: D

Economics

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If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will

a. continue to earn positive economic profits because successful advertising is one of the barriers to entry b. earn zero economic profits because the government will begin to regulate the industry c. earn negative economic profits because it won't be able to advertise indefinitely d. earn zero economic profits because other firms will also begin to advertise e. continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run

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The marginal revenue product of capital is not the

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Highway and home construction had a boom from

A. 1925-1940. B. 1935-1950. C. 1945-1960. D. 1965-1980.

Economics

Which of the following is not an argument used by economists and policymakers who are in favor of moving toward greater government involvement in health care?

A) The increased competition that results from market-based reforms would reduce health care costs and increase economic efficiency. B) A single-payer system would reduce the paperwork caused by the current system. C) The current Medicare system has had lower administrative costs than have private health insurance companies. D) The systems in most other high-income countries have lower levels of health care spending per person which still providing good health outcomes.

Economics