In an economy, newly-issued money originates from
A) the central bank.
B) commercial banks.
C) the sale of stocks and bonds.
D) the deposits of individuals.
A
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Your roommate, Serafina, a psychology major, said, "The problem with economics is that it assumes that consumers and firms always make the correct decision. But we know that everyone's human, and we all make mistakes"
Do you agree with her comment? A) I disagree with her. Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave rationally, meaning they make the best decisions given their knowledge of the costs and benefits. B) Yes, I agree with her. One cannot make predictions about economic behavior because in reality people make incorrect choices in many situations. C) Yes, I agree with her. Economic theory should allow for irrational behavior so that we can have more reliable predictions. D) I disagree with her. If we cannot assume that decisions are correct, then we will not be able to examine the moral implications of these decisions.
In the eyes of the law, a corporation is a legal "person," separate from its owners. Explain what this means
What will be an ideal response?
Along an LM curve at lower interest rates there is __________ money demanded, so income must be lower to __________ the demand for transactions balances if the total demand for money is to equal the fixed supply
A) less; decrease B) less; increase C) more; decrease D) more; increase
One problem with the absolute approach to poverty is that there is no agreement as to which goods and services to include in the definition
Indicate whether the statement is true or false