The money-creating ability of the banking system may be lowered by:
a. a decrease in the cash balances that people wish to hold.
b. a fall in the overall rate of inflation.
c. an increase in the excess reserves.
d. an increase in total deposits.
e. an increase in the reserve requirement.
e
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When your textbook authors say competition "can be recognized only in motion pictures, not in still photographs," they mean
A) Hollywood is a competitive industry; portrait photography is non-competitive. B) competition is better described as a process, rather than a fixed state of affairs. C) competitors don't sit still. D) competition didn't exist before the advent of motion picture technology.
Society's demand curve for a public good:
a. is given by the horizontal summation of individual demand curves. b. is given by the vertical summation of individual demand curves. c. cannot be derived from individual demand curves due to the nature of a public good. d. is given by the average citizen's individual demand curve.