Through the taking of deposits and making loans, banks
A. create more money that physically exists.
B. have no role in the money creation process.
C. destroy money that would physically exist if they were not part of the process.
D. leave the system with exactly the same amount of money as physically exists.
Answer: A
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Refer to the figure above. Which indifference curve depicts the highest level of utility?
A) IC1 B) IC2 C) IC3 D) IC4
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is important to recognize that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house
(a) In which year did disinflation begin? (b) In which year did deflation begin?
Individuals economize and respond predictably to
a. positive incentives, but not negative incentives. b. negative incentives, but not positive incentives. c. both positive and negative incentives. d. neither positive or negative incentives.