An understanding of macroeconomics is valuable because it can help
a. in making purchase decisions
b. us to understand the forces that determine how fast the economy grows
c. us to understand why some firms earn more economic profit than others
d. to minimize the amount of tax an individual owes
e. minimize the opportunity cost of making poor decisions
B
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Rent seeking is the act of obtaining special treatment by ________ to create ________
A) a monopoly; consumer surplus B) the government; economic profit C) consumers; a monopoly D) the government; consumer surplus E) competitive producers; a monopoly
If the reserve ratio is 8 percent, then a decrease in reserves of $6,000 can cause the money supply to fall by as much as
a. $48,000. b. $75,000. c. $55,200. d. $10,800.
The theory of purchasing-power parity implies that the demand curve for foreign-currency exchange is
a. downward sloping. b. upward sloping. c. horizontal. d. vertical.
If the Fed purchases $100,000 of government bonds, and the reserve requirement is 20 percent, the maximum increase in the money supply is $ 500,000.
Answer the following statement true (T) or false (F)