As the reserve ratio goes up, less money will be created because:
A. banks will extend more loans.
B. people will hold less cash.
C. people will hold more cash.
D. banks will extend fewer loans.
Answer: D
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Use the following graph to answer the next question.
Which point is not on the perfectly competitive firm's short-run supply curve?
A. E B. F C. G D. H
Refer to Figure 8A.1. The stock of capital no longer increases once the economy reaches point
A) a. B) b. C) c. D) e.
A large number of sellers all selling an identical product implies which of the following?
A) market chaos B) the inability of any seller to change the price of the product C) large losses incurred by all sellers D) horizontal market supply curves E) vertical market supply curves
In a closed economy ________
A) investment equals consumption B) investment equals savings C) saving equals consumption D) exports are greater than imports