Because a bank earns money when it makes a loan to a borrower it:
A. has an incentive to loan out as much of each deposit as it can.
B. has an incentive to borrow from the government as much as it can to loan out.
C. needs to loan out more than it takes in through deposits to make money.
D. has more of an incentive to loan out money than take money in through deposits.
A. has an incentive to loan out as much of each deposit as it can.
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Suppose milk and chocolate syrup are complements (mixed together they make chocolate milk). If the price of milk increased by exactly 25%, the economic way of thinking suggests
A) the demand for milk would decrease. B) the demand for chocolate syrup would decrease. C) the demand for milk would decrease by exactly 25%. D) the demand for chocolate syrup would decrease by exactly 25%.
Any factor that shifts the supply curve inward and to the left and does not affect the demand curve will raise the equilibrium price and reduce the equilibrium quantity
a. True b. False Indicate whether the statement is true or false
Monetary policy affects employment
a. only in the long run. b. only in the short run. c. in both the long run and the short run. d. in neither the long run nor the short run.
The interest rate effect states that _____________.
Fill in the blank(s) with the appropriate word(s).