Cautious banks may choose to hold excess reserves instead of lending them
Indicate whether the statement is true or false
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If the growth rate of the money supply in an economy is 5%, the growth rate of output is 2%, and the velocity of money is constant, what will the inflation rate in this economy be?
What will be an ideal response?
An insecure monopoly can deter another firm from entering the market by setting its quantity equal to:
A. the zero profit quantity. B. the zero profit quantity - the minimum entry quantity. C. the minimum entry quantity. D. the zero profit quantity + the minimum entry quantity.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.
Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?
What will be an ideal response?