We would expect which of the following to occur when the central bank conducts an open market sale of bonds?
A) a reduction in the monetary base (H)
B) a reduction in the money multiplier
C) an increase in H
D) an increase in the money multiplier
E) both C and D
A
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Which of the following equations best represents a Cobb-Douglas production function?
A) Y = AK1L1 B) Y = AK3/4L1/4 C) Y = AK1/3L3 D) Y = AK2/3L3/2
An increase in Social Security payments to retired persons has what effect on equilibrium income?
a. GDP will fall. b. GDP will rise. c. GDP will remain the same. d. GDP will fall by less than the increase in payments.
If a country takes advantage of the comparative advantage of some resources over others, its production possibility curve is likely to be:
A. bowed outward. B. straight. C. flat. D. bowed inward.
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by passing the Smoot-Hawley Tariff. In response to this tariff, other countries ________ and international trade ________
A) lowered their tariffs; thrived B) raised their tariffs; collapsed C) eliminated tariffs; began to grow outside of the United States D) doubled their tariffs; became unrestricted