To calculate the monetary base, one must:
a. Add currency held both inside financial institutions and outside financial institutions to deposits at the central bank.
b. Subtract currency in circulation from financial institutions' reserves.
c. Sum all financial institutions' reserves, because financial institutions' reserves and the monetary base are two terms meaning the same thing.
d. Subtract from financial institutions' reserves all deposits held with the central bank.
e. None of the above.
.A
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The net loss in welfare from a quota is proportionately larger than for a tariff because: a. it does not result in government revenue
b. the loss in consumer surplus is greater than the gain to producers and the government. c. it prevents nations from fully realizing their competitive advantage. d. it brings about higher prices and revenues to domestic producers.
What is the expected value of a $100 bet on a flip of a fair coin, where heads pays double and tails pays zero?
What will be an ideal response?
The marginal rate of substitution ____ as one moves downward along the indifference curve.
A. increase B. remains constant C. decreases D. increases and then decreases
All else equal, if Canada raises its interest rates,
A) the dollar depreciates. B) the U.S. demand for Canadian dollars decreases. C) the Canadian supply of Canadian dollars increases. D) the Canadian dollar will depreciate.