Assuming a horizontal long-run market supply curve, which of the following statements is (are) TRUE about competitive firms in the long run?
A) p = MC
B) p = AC
C) profit = 0
D) All of the above.
D
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In the late 1990s, M2 velocity ________, suggesting a ________ normal relationship between M2 and macroeconomic variables
A) stabilized; less B) stabilized; more C) slowed; less D) slowed; more
If supply increases, then quantity demanded decreases
a. True b. False
Answer the following statements true (T) or false (F)
1. The Glass Steag all Act was passed in 1932 to prevent ruinous competition in the banking industry. 2. The Financial Services Modernization Act of 1999 seeks to restrict competition between insurance companies and banks. 3. The Financial Services Modernization Act of 1999 is likely to result in fewer financial institutions. 4. Electronic transfers now account for nearly 90 percent of the dollar value of all transactions in the United States. 5. Cash transactions account for about 20 percent of the value of transactions. 6. Stored value and smart cards are forms of electronic banking.
Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus?
a. An increase in demand. b. A decrease in demand. c. An increase in supply. d. Any of the above.