Using the equation of exchange and assuming full employment and a constant velocity of money, a decrease in the required reserve ratio would result in a
A. Lower velocity.
B. Lower price level.
C. Lower quantity of real output.
D. Higher price level.
Answer: D
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With labor migration, the country of origin experiences:
A. An increase in output and a rising wage rate B. An increase in output and a falling wage rate C. A decrease in output and a falling wage rate D. A decrease in output and a rising wage rate
A two-firm oligopoly is called a
A) double monopoly. B) cartel. C) duopoly. D) monopolistic oligopoly. E) dual-market.
Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?
A) $90.00 B) $10.00 C) $55.00 D) $52.50
If a good is normal, then the income effect is _____ for a price increase and _____ for a price decrease.
A. positive; negative B. positive; positive C. negative; negative D. negative; positive