Demand deposits are:
a. accounts in which one cannot write a check directly but from which the individual can easily withdraw money.
b. the coins and bills that circulate in an economy
c. purchased from a bank or financial company, signed, and then redeemed with an additional signature when one wants to spend them.
d. deposits in banks that are available upon making a cash withdrawal or writing a check.
d
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A concentration ratio is used to
A) determine whether a market structure is oligopoly. B) determine the importance of labor in the production process. C) determine the degree of homogeneity in the market. D) see if a firm qualifies for federal assistance.
Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose current taxes are cut and that individuals expect future taxes to decrease. Given this information, we know with certainty that
A) current output and the current interest rate will both increase. B) current output will increase. C) the current interest rate will increase. D) the current output effects are ambiguous.