An industry has only four firms, who have market shares of 45 percent, 25 percent, 20 percent, and 10 percent. What is the Herfindahl-Hirschman Index?

Answer the following statement(s) true (T) or false (F)

1. If the marginal propensity to save is 0.25 in an economy with no taxes and no imports, the marginal propensity to consume is 1.25. 2. Between 2003 and 2010, the unemployment rate in Ft. Myers, Florida, decreased from 13% to 3%. 3. Inventories are counted as investment because inventories are a source of future sales. 4. In a simple economy with no taxes, government spending, exports, or imports, if disposable income increases by $500 and $450 is consumed, $950 is saved.

Which of the following allow banks to minimize the cost to a business of borrowing?

I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III