The main way that banks create money is by ______; the main way that money is destroyed is when _______.
Fill in the blank(s) with the appropriate word(s).
giving out loans; the loans are repaid
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A decrease in the nominal money supply would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
A firm's marginal cost has a minimum value of $4, its average variable cost has a minimum value of $6, and its average total cost has a minimum value of $7 . Then the firm will shut down in the short run once the price of its product falls below
a. $7. b. $6. c. $4. d. We do not have enough information to answer the question.
A union will try to increase employment for its members as long as the marginal wage is positive.
Answer the following statement true (T) or false (F)
Last month Laura saw the value of her stock portfolio rise by $20,000. This month she saw the value of her portfolio decline by $20,000. According to behavioral economics:
A. the positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined. B. Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses. C. the positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined. D. the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.