An increase in the demand for steel occurs. As a result, firms in the steel industry will
A. experience no change in their demand for capital.
B. decrease their demand for capital.
C. decrease both output and their demand for capital.
D. increase their demand for capital.
D. increase their demand for capital.
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Discuss the role of more "transparency" in reducing the risk of financial crisis
What will be an ideal response?
If firms meet together to decide on prices and outputs there is
a. overt collusion. b. tacit collusion. c. price leadership. d. None of the above are correct.
The reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency. When the Fed sells $20 million worth of bonds to the public, bank reserves
a. increase by $20 million and the money supply eventually increases by $20 million. b. increase by $20 million and the money supply eventually increases by $200 million. c. decrease by $2 million and the money supply eventually increases by $20 million. d. decrease by $20 million and the money supply eventually decreases by $200 million.
The demand curve facing a monopolist will be more elastic
A. as the number of consumers increases. B. the greater is the amount of fixed costs to cover. C. the greater is the number of substitute products. D. as the consumers' need for the good increases.