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The total change in deposits is equal to ID/m if nobody wants to hold currency and banks lend to their limit. If these two assumptions are relaxed, the increase in deposits is lower. So, in general, the increase in total deposits is at most ID/m.
A movement along a demand curve indicates that a different quantity is being demanded
This movement is due to
Under perfect competition, the long-run equilibrium of the firm is established at
Economics of scale means
When the economist speaks of an increase in demand, he is usually referring to a ____________________
If the firms under perfect competition have different costs, abnormal profits can be earned in the long run only by
Statement “Price is the amount of money and/or other item with utility needed to acquire a product" is given by
Concept of 'Consumer's Surplus' was evolved by
From the resource allocation point of view, perfect competition is preferable because
In a typical demand schedule, quantity demanded varies
Market demand for any good is a function of the
