Which of the following statements is correct? In the special case of the 100-percent reserve banking the money multiplier is
a. 0 and banks create money.
b. 0 and banks do not create money.
c. 1 and banks create money
d. 1 and banks do not create money.
d
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Which of the following statements about markets is correct? I. A market helps resources move to their highest-valued uses by means of prices changes. II. A market represents the exchanges of both buyers and sellers
A) I only B) II only C) Both I and II D) Neither I nor II
Changes in the price of an input cause:
A. slope changes in the isocost line. B. isoquants to become steeper. C. parallel shifts of the isocost lines. D. changes in both the isoquants and isocosts of equal magnitude.
The key question, according to the textbook, for those who want to understand the vast differences in wealth among the nations of the world today is:
What will be an ideal response?
As the stock of a depletable resource falls, its user cost
A) rises. B) falls. C) is unchanged, but its price rises. D) is unchanged, but the extraction cost rises. E) is unchanged, but its true cost rises.