Costs that tend to deter firms from changing their prices in response to changes in the market equilibrium price are referred to as

The act of buyers and sellers freely conducting business in a market

a. voluntary exchange b. free market system c. profit motive d. fraud

Explain how a currency drain affects the size of the money multiplier. In your explanation, suppose that a bank gains $1 million in new deposits and reserves

Further suppose that the desired reserve ratio is 10 percent and the currency drain is 50 percent.