Fixed investment includes spending on all of the following goods except:
a. machinery
b. inventory.
c. tools.
d. factory buildings.
b
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Strategic advertising in the cola market
A) significantly expands the size of the market. B) brings in few new customers and primarily shifts market share among rivals. C) shifts market demand to the right, increasing quantity sold and decreasing prices. D) has no impact on the market.
When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation
a. True b. False Indicate whether the statement is true or false
Which of the following is not a function of the Federal Reserve System?
a. Supervising the banking system. b. Deciding the maximum interest rates banks can charge for loans. c. Clearing checks. d. Acting as a bank for banks. e. Dealing with financial crises.
Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling
a. $2 million b. $4 million c. $10 million d. $16 million e. $20 million