The quantity of money decreases if
A) banks loan all excess reserves.
B) the Treasury Department issues fewer government securities.
C) the desired reserve ratio decreases.
D) the Fed buys U.S. government securities.
E) the currency drain ratio increases.
E
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Investment (I) in the United States may increase with either an increase in national saving or an increase in net foreign investment
Indicate whether the statement is true or false
Accounting profit differs from economic profit because:
a. of differences in the manner in which revenue is calculated. b. economic costs include depreciation, while accounting costs do not. c. accounting costs are generally higher than economic costs because accounting costs include explicit and implicit costs, while economic costs include only explicit costs. d. economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.