Which of the Following Statements Is True

question 80

Multiple Choice

Which of the following statements is true?

• A)In the short run, there are no fixed costs, only variable costs.
• B)In the short run, there are fixed and variable costs, but in the long run there are only fixed costs.
• C)In the short run, there are fixed and variable costs, but fixed costs are the only costs a firm is concerned with.
• D)In the long run, there are no costs, fixed or variable.
• E)none of the above

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Definitions:

Simple Money Multiplier

Refers to the ratio indicating the maximum amount of money that banks can theoretically generate with each dollar of reserves.

Cash Withdrawals

The process of taking money out of a bank account using a debit card or bank slip.

Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.

Fed

Short for the Federal Reserve System, it's the central banking system of the United States, responsible for monetary policy, including regulating banks, managing inflation, and influencing interest rates.