If the required reserve ratio was increased, then:
a. the money supply would tend to decrease, but the outstanding loans of banks would tend to increase.
b. both the money supply and the outstanding loans of banks would tend to decrease
c. the money supply would tend to increase, but the outstanding loans of banks would tend to decrease.
d. both the money supply and the outstanding loans of banks would tend to increase.
b
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In the above figure, the line represented by the "4" is the
A) average fixed cost. B) marginal revenue. C) average total cost. D) marginal cost.
The owner of a proprietorship might decide incorporate the firm as a corporation in order to
A) be able to conduct business in more than one county. B) avoid the principal-agent problem. C) be eligible for patent protection of new products. D) gain limited liability.
The greater the economic freedom in a country, the higher is the index of human development
a. True b. False Indicate whether the statement is true or false
A lump-sum tax minimizes deadweight loss
a. True b. False Indicate whether the statement is true or false