The ratio of the total amount of demand deposits at a bank to the amount kept as cash reserves is known as the:
A. reserve ratio.
B. demand deposit ratio.
C. demand-reserve ratio.
D. federal funds rate.
A. reserve ratio.
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When the wage increases, the income effect on the household's choices leads to
A) a decrease in consumption and leisure. B) a decrease in consumption and an increase in leisure. C) an increase in consumption and a decrease in leisure. D) an increase in consumption and leisure.
The benefits of social regulation usually are
A) small. B) obvious to people while the costs are hidden. C) less than the costs of social regulation, reducing overall welfare. D) difficult to measure.
Under perfect competition in the resource market, the marginal factor cost curve:
a. is positively sloped. b. is vertical. c. is negatively sloped. d. is horizontal. e. does not exist.
Professor Milton Friedman stated that "inflation is a monetary phenomenon." What did he mean by this statement and what is the basis for this assertion?
What will be an ideal response?