If the transactions approach to measuring money is used, then the money supply consists of
A) currency only.
B) transaction deposits only.
C) currency and transaction deposits only.
D) currency, checkable and debitable deposits, and traveler's checks.
D
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In the Cournot model, if a firm's marginal cost increases, its best-response function will
A) shift inward. B) not change. C) shift outward. D) The shift is ambiguous.
Sellers who were originally willing to supply 400 units of a good at $4 per unit are now willing to supply 800 units at $4 per unit. That change would be described as: a. an increase in supply
b. a decrease in supply. c. an increase in quantity supplied. d. a decrease in quantity supplied.
If D represents the level of decentralization of corporate decisionmaking, and A and C are positive constants, then Benefits = B × D and Costs = A × D + C × D2. The optimal level of decentralization occurs where the
A. sum of the squares of the distance between the benefits and costs curves is minimized. B. level of benefits is greatest. C. vertical distance between the benefits and costs curves is greatest. D. horizontal distance between the benefits and costs curves is greatest.
The money supply increases when the Fed
a. lowers the discount rate. The increase will be larger the smaller the reserve ratio is. b. lowers the discount rate. The increase will be larger the larger the reserve ratio is. c. raises the discount rate. The increase will be larger the smaller the reserve ratio is. d. raises the discount rate. The increase will be larger the larger the reserve ratio is.