Which of these statements about economic models is correct?
a. For economists, economic models provide insights about the world.
b. Economic models are built with assumptions.
c. Economic models are often composed of equations and diagrams.
d. All of the above are correct.
d
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We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when
A) supply increases and demand decreases B) supply decreases and demand increases. C) supply and demand for a product simultaneously decrease. D) supply and demand for a product simultaneously increase.
The reserve requirement is the:
A. minimum level of reserves a bank can have. B. maximum level of reserves a bank can have. C. maximum ratio of reserves to deposits that a bank can have. D. minimum ratio of reserves to deposits that a bank can have.