Under a barter system
A) each good has many prices.
B) each good has a single price.
C) no prices for goods exist.
D) prices for goods are very stable.
A
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The basic reason why the commercial banking system can increase its checkable deposits by a multiple of its excess reserves is that:
A. reserves lost by any particular bank will be gained by some other bank. B. the central banks follow policies that prevent reserves from falling below the level required by law. C. the MPC of borrowers is greater than zero but less than 1. D. the banking system must keep reserves equal to 100 percent of its checkable-deposit liabilities.
The burden of Medicaid costs are:
A. The sole responsibility of states B. The sole responsibility of the Federal government C. Shared by the states and Federal government D. Shared by the states and the individual receiving the benefits
A shortage exists in the market if
a) there is an excess supply of the good b) quantity supplied exceeds quantity demanded c) the current price is below its equilibrium price d) all of the above are correct
Prices provide the rationing function best when
A) prices are flexible. B) prices are inflexible. C) they are used in conjunction with queuing. D) price controls are in place and ration coupons are used too.