Suppose that in a country people gain more confidence in the banking system and so hold relatively less currency and more deposits. As a result, bank reserves will
a. decrease and the money supply will eventually decrease.
b. decrease and the money supply will eventually increase.
c. increase and the money supply will eventually decrease.
d. increase and the money supply will eventually increase.
d
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Refer to the above figure. A price control has been set which has led to a surplus. This means that a
A) price ceiling has been set at P1. B) price floor has been set at P1. C) price ceiling has been set at P2. D) price floor has been set at P2.
Industry X has four firms. The largest firm in Industry X has more than 90 percent of the market share. Industry Y also has four firms, but each of those four firms in Industry Y has 25 percent of the market share
The Herfindahl-Hirschman index will be A) the same for both industries, but the four-firm concentration will be larger for Industry Y than Industry X. B) the same for both industries, but the four-firm concentration will be larger for Industry X than Industry Y. C) larger for Industry Y than Industry X, but the four-firm concentration will be the same. D) larger for Industry X than Industry Y, but the four-firm concentration will be the same.