The reason firms often choose sales maximization as a goal is because
a. that is where profits are maximized.
b. it is impossible to maximize profits.
c. firms are managed and owned by different groups of people with different goals.
d. owners believe setting price/output to maximize profits is unfair to consumers.
c
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All of the following except one are reasons the demand deposit multiplier may be smaller in practice than in theory. Which one is not a valid reason?
a. Banks do not want to hold excess reserves. b. Some of the currency generated when bonds are purchased ends up outside of the banking system. c. Banks sometimes hold more than their required reserves. d. An open market operation may change the public's holding of cash. e. All of the above are not valid reasons.
For a snow-removal business, the capital stock would include inputs such as snow blowers and shovels
a. True b. False Indicate whether the statement is true or false