In Figure 13-1 above, which money demand curve reflects the introduction of interest-bearing checking accounts?
A) ( 0)
B) L(Y0)
C) (M1/P)0
D) (M1/P)1
B
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A key difference between small-denomination and large-denomination time deposits is that
A) small-denomination time deposits pay no interest. B) large-denomination time deposits may be bought and sold on secondary markets. C) large-denomination time deposits carry a significant penalty for early withdrawal. D) small-denomination time deposits carry a significant penalty for early withdrawal.
What is the profit maximizing condition for a vertically integrated firm?
A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs. B) Marginal revenue equals the marginal cost of the final output. C) Net marginal revenue equals the marginal cost of each intermediate good. D) The sum of net marginal revenues equals the marginal cost of the final output.
Which of the following is NOT an advantage of a proprietorship?
A) They are easy to form and dissolve. B) Decision-making resides with one person—the owner. C) Liability of the owner is unlimited. D) Profits are only taxed once.
What would the portfolio demand for money look like if it were graphed on a set of axes? What would each axis represent?
What will be an ideal response?