If bank customers decide as a group to pay off their loans and to not take out any new loans, ceteris paribus,
A. The money supply will increase.
B. The money supply will decrease.
C. Excess reserves will decrease.
D. The money multiplier will decrease.
Answer: B
Economics
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Which of the following statements is true?
A) Growth in technology is linear in nature. B) Growth in land productivity is exponential in nature. C) Growth in technology is exponential in nature. D) Growth in labor productivity is exponential in nature.
Economics
If a firm buys a building so as to have office space for its workers, the monthly opportunity cost of the building is best measured as
A) the monthly mortgage payment the firm must pay. B) the price the firm paid divided by twelve. C) zero. D) the rent the firm could earn if it rented the building to another firm.
Economics