If banks faced a 100 percent reserve requirement, a decrease in banking reserves of $4 million would:
a. increase the money supply by $4 million
b. increase the money supply by $400 million.
c. decrease the money supply by $4 million.
d. decrease the money supply by $400 million.
c
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When individuals make decisions with some desired outcome in mind, they are engaging in:
a. purposeful behavior b. economically efficient behavior c. chaotic behavior d. random behavior
If the price of an input decreases, each individual firm?s marginal cost curve shifts ________ and the industry supply curve ________.
A. downward; shifts to the left B. downward; shifts to the right C. up; shifts to the left D. up; does not change
Theories of international economics from the 18th and 19th Centuries are
A) not relevant to current policy analysis. B) only of moderate relevance in today's modern international economy. C) highly relevant in today's modern international economy. D) the only theories that actually relevant to modern international economy. E) not well understood by modern mathematically oriented theorists.
When we describe stock prices as following a random walk, we mean that future changes in stock prices are
A) unpredictable. B) increasing. C) decreasing. D) constant.