Banks can increase the supply of money
A. only by increasing the currency in the hands of the public.
B. only by increasing the checking deposits held by the public.
C. by increasing both the currency and the checking deposits in the hands of the public.
D. neither by increasing the currency nor the checking deposits in the hands of the public.
C. by increasing both the currency and the checking deposits in the hands of the public.
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Malaysia, Brazil, and South Korea are each
A. less developed countries (LDCs). B. newly industrializing countries (NICs). C. industrialized countries.
Payments by the government to the public for which the government receives no current goods or services in return are called:
A. capital losses. B. net taxes. C. public saving. D. transfer payments.
Why do people keep currency in their pockets when bank deposits pay interest?
A. Because bank deposits lose value due to inflation. B. Because bank deposits lose value due to changes in interest rates. C. Because banks might steal your money. D. Because currency is more liquid.
Under perfect competition, existing firms leave the market in the long run if the price falls below total fixed cost
a. True b. False Indicate whether the statement is true or false