The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:
A. of commercial banks are unchanged, but their reserves increase.
B. and reserves of commercial banks both decrease.
C. of commercial banks are unchanged, but their reserves decrease.
D. and reserves of commercial banks are both unchanged.
B. and reserves of commercial banks both decrease.
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According to the new growth theory, real GDP per person grows because
A) the retirement age increases. B) the labor force participation rate increases. C) people make choices in pursuit of profits. D) the population increases. E) the government subsidizes firms' research and development.
Marginal utility tends to fall as a person increases his or her consumption
a. True b. False Indicate whether the statement is true or false
The key characteristic of oligopoly is
a. that firms are price takers b. strategic interaction among firms c. strategic independence among firms d. that firms deal with few resource suppliers e. a low minimum efficient scale of production
Which of the following describes a trade deficit?
a. Exports plus imports b. Exports divided by imports c. Exports multiplied by imports d. Exports exceed imports e. Imports exceed exports