What are the two key features of perfectly competitive markets in the Classical Model?
What will be an ideal response?
1 . Perfectly flexible prices and wages
2 . Perfect information on the part of all market participants about market prices
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The Fed conducts an open-market sale of Treasury bills of $5 million. If the required reserve ratio is 0.20, what change in the money supply can be expected using the oversimplified money multiplier?
A. $25 million B. $5 million C. 0 D. ?$5 million E. ?$25 million
How much is a person’s investment worth after 25 years if they invest $200 at 3%?
a. $418 b. $350 c. $275 d. $260
Since it is a centrally planned economy, China does not face opportunity costs when economic decisions are made
a. True b. False Indicate whether the statement is true or false
Microeconomics is the study of aggregate behavior in the economy.
Answer the following statement true (T) or false (F)