In an unregulated environment, the commercial banking system would tend to vary the supply of money in a way that:
A. Increased the money supply to the maximum at all times
B. Decreased the money supply to the minimum at all times
C. Emphasized the use of currency over demand deposits
D. Reinforced cyclical variations in the economy
D. Reinforced cyclical variations in the economy
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Your textbook authors argue that the redemption efforts to free Sudanese slaves
A) generally succeeded until the government stepped in and created unintended shortages. B) worked poorly because slave surpluses became rampant. C) unintentionally increased profitability and slave supply. D) proved that underground markets do not coordinate the plans of participants.
When a free-rider problem exists,
a. the market will devote too few resources to the production of the good. b. the cost of the good will always be more than the benefit of the good. c. the good will not be produced. d. entrepreneurs will eventually find a way to make free-riders pay their share.
Nonexcludable goods tend to be undersupplied because:
A. people do not pay the true value of the good. B. the free rider problem persists. C. people rarely willingly pay for something they could get for free, regardless of how much they value it. D. All of these statements are true.
This monopolist
A. is in the short run.
B. is in the long run.
C. may be in the short run or the long run.