Another name for the money of checking accounts is
A. certificates of deposit.
B. time deposits.
C. demand deposits.
D. bank notes.
C. demand deposits.
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If price elasticity of supply is large and demand is price-inelastic, then the firm can earn positive profits by increasing the price
a. True b. False Indicate whether the statement is true or false
What is the reason for the law of increasing opportunity costs?
A) There is no reason: it is just one of the laws of economics. B) Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it. C) The price of a good rises as more of it is demanded. D) As more of a good is produced, the taxes applied to the production of the good rise. E) c and d
Which one of the following is a familiar type of asset-backed security?
a. U.S. Treasury bonds b. movie box-office receipts c. shares of stock in corporations d. securities backed by home mortgages e. none of the above
How will the purchase of $100 million of government securities by the Federal Reserve change bank reserves and total checking account deposits in the banking system as a whole? Assume that banks do not hold any excess reserves, that households and firms
do not change the amount of currency they hold, and that the required reserve ratio is 20 percent. What will be an ideal response?