Banks are permitted to lend all of their reserves

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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You should invest in a project if the cost you incur today is greater than the present value of the future payments from the project

Indicate whether the statement is true or false

Economics

Which of the following is NOT considered a consumption good?

A) Nike swimming trunks B) marriage counseling services C) a UPS truck D) a Subway sandwich E) a U.S. government bond

Economics

If a monopolist produces to a point at which marginal revenue is more than marginal cost then

A) the firm should increase output. B) the firm should reduce output. C) the firm is maximizing profits. D) we do not know if the firm should increase or reduce without more information.

Economics

The longer the time period under study,

a. the more elastic is the price elasticity of demand. b. the less sensitive consumers will be to price changes. c. the less adjustment consumers will make to price changes. d. the more inelastic is the price elasticity of demand. e. the more likely any given price cut will result in a smaller reaction by the consumer.

Economics