In a commercial bank's T-account, reserves and outstanding loans are recorded as:
A. debts.
B. profits.
C. assets.
D. liabilities.
Answer: C
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The Sherman Antitrust Act makes it unlawful for firms to collude to restrain trade
a. True b. False
Suppose that the Fed makes a $100 billion open-market sale of Treasury bonds, and the money multiplier is 6 . Which of the following impacts aremostlikely to result?
a. The money supply shifts inward, and the equilibrium interest rate rises in the money market. b. The money supply shifts outward, and the equilibrium interest rate falls in the money market. c. Investment declines, causing the aggregate demand curve to shift leftward, reducing equilibrium real GDP and thus slowing the economy. d. Both a. and c. are correct. e. Both b. and c. above are correct.
Refer to the accompanying table. Julia's opportunity cost of making a cake is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 5/6 of a cake. B. 60 cakes. C. 6 cakes. D. 6/5 of a cake.
Markets characterized by declining long-run average costs are often referred to as
A. natural monopolies. B. diseconomies of scale. C. perfect competition. D. nonprofit organizations.