In the short run, if a firm shuts down it avoids its variable cost but not its fixed cost
Indicate whether the statement is true or false
TRUE
Economics
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The term "recovery" refers to the maximum point of the business cycle
a. True b. False Indicate whether the statement is true or false
Economics
Firms with monopoly power tend to be more efficient than competitive firms.
Answer the following statement true (T) or false (F)
Economics
A situation in which the Fed's target interest rate has fallen as far as it can fall is sometimes described as a
a. liquidity preference. b. liquidity trap. c. open-market trap. d. interest-rate contraction.
Economics
If a bank subject to a 20% required reserve ratio has $10,000 in excess reserves, it can extend, at a maximum, which quantity of new loans?
A. $2,000 B. $8,000 C. $10,000 D. $100,000
Economics