The lending ability of the banking system increases if the:
a. Reserve ratio rises.
b. Preferred asset ratio for customary reserves rises.
c. Preferred asset ratio for near money rises.
d. Demand to hold money rises.
e. All of the above.
.C
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How does the textbook distinguish between coercion and persuasion? Coercion induces cooperation by
A) making only a majority better off, persuasion by making everyone better off. B) making nearly everyone better off, persuasion by making only a few people better off. C) threatening to reduce people's options, persuasion by promising to increase their options. D) using force, persuasion by using rational argument.
If a firm experiences economies of scale,
a. it moves up along the long run average total cost curve. b. expansion of output becomes more expensive for the firm. c. the firm can reduce its per unit cost by producing less. d. the firm must shut down in the long run. e. the firm can reduce its per unit cost by expanding production.