A one percentage point change in the required reserve ratio would change the money supply by less than one percent, other things being equal
a. True
b. False
Indicate whether the statement is true or false
False
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If consumption is $750 when real disposable income is $1,000, the average propensity to consume is
A) 0.50. B) 0.25. C) 0.80. D) 0.75.
Evidence in support of the hypothesis that unions increase the productivity of union workers is
A) the fact that union wages are greater than nonunion wages. B) there is an excess supply of labor at the union wage rate. C) that unionized firms face lower turnover rates than nonunion firms do. D) that most contracts are settled without a strike.
Ali's Gyros operates near a college campus. Ali has been selling 120 gyros a day at $4.50 each and is considering a price cut. He estimates that he would be able to sell 200 gyros per day at $3.50 each
a. Calculate the price elasticity of demand using the midpoint formula. b. Calculate the change in revenue as a result of the price cut. What will be an ideal response?
Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 1 pound of pork for 2 pounds of tomatoes, then
A. the farmer will gain from this trade, but the rancher will not. B. the rancher will gain from this trade, but the farmer will not. C. neither the farmer nor the rancher will gain from this trade. D. the farmer and the rancher will both gain from this trade.