As spending on government purchases increases, income rises and money demand falls
Indicate whether the statement is true or false
FALSE
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Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5 percent, how much can this bank increase its loans?
A) $80 B) $0 C) $100 D) $400 E) $50
Which of the following would shift a nation's production possibilities frontier inward?
A) an increase in the unemployment rate B) producing more capital equipment C) a law requiring workers to retire at age 50 D) discovering a cheap way to convert sunshine into electricity
In an oligopoly, advertising: a. allows a firm to sell any quantity it wishes
b. shapes consumers' preferences. c. shapes perceived demand for a price taker. d. allows a firm to raise the prevailing market price.
Economists use the term self-interest to indicate that people ______.
a. mostly act for material gain b. are basically selfish c. make choices for personal satisfaction d. want to become wealthy