Trade agreements are reciprocal in the sense that:
a. workers and firms suffer because of international trade
b. a rise in the prices of imports in one country leads to a decrease in the prices of imports in other countries.
c. when a country opens its domestic markets to imports, markets in other nations are opened to its exports.
d. when small companies in one country sell to larger markets in other countries, they gain economies of scale.
c
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Assuming a fully loaned-up banking system and a deposit expansion multiplier of 2, a $10 million government expenditure financed by sales of securities to the banking system will cause the money supply to
A) remain unchanged. B) rise by $5 million. C) rise by $10 million. D) rise by $20 million.
A firm operating at MC = MR must be making a profit.
Answer the following statement true (T) or false (F)
According to the law of supply, as the price of a good increases,
a. buyers will buy more of the good. b. buyers will buy less of the good. c. sellers will produce more of the good. d. sellers will produce less of the good.
Which of the following will be reduced during an expansionary monetary policy?
a. the return to saving b. spending c. borrowing d. money supply