When a customer deposits $100 into a checking account, it:
a. increases the bank's liabilities only
b. decreases the bank's liabilities only.
c. increases the bank's assets only.
d. decreases both the bank's liabilities and its assets.
e. increases both the bank's liabilities and its assets.
e
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If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to:
A. save is 0.30. B. consume is 0.80. C. consume is 0.75. D. save is 0.60.
When considering rent seeking, which of the following is TRUE?
A) The anti-free trade group generally will lobby more than the pro-free trade group. B) The pro-free trade group generally will lobby more than the anti-free trade group. C) Usually only the anti-free trade group is concerned about what is best for society at large. D) Only the pro-free trade group is concerned about the government's revenue from tariffs.
The quantity produced by a natural monopolist facing an average-cost pricing policy will be:
A. less than the quantity produced by a marginal cost pricing policy. B. that quantity at which average costs are at their minimum. C. that quantity at which marginal costs are at their minimum. D. the same as the quantity that would be produced in perfect competition.
If the utility for two goods "x" and "y" can be measured as U = x, then it can be concluded that
A) "x" and "y" are perfect complements. B) "y" is a "bad". C) the indifference curves on the x,y graph are upward sloping where "x" is measured on the horizontal axis. D) the indifference curves on the x,y graph are vertical where "x" is measured on the horizontal axis.