Suppose the stock of capital increases by 2% and employment increases by 2%. Given this information, we know that
A) output per capita will increase by 6%.
B) output will increase by 4%.
C) output per capita will increase by less than 4% and more than 2%.
D) none of the above
D
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Which of the following helps to determine a currency's international role as the dominant reserve currency?
A) amount of seigniorage B) policy goals of national monetary authorities C) size of the domestic economic activity relative to international trade D) All of the above
In the real world, the actual multiplier is ____ the simplified multiplier
a. much larger than b. slightly larger than c. equal to d. slightly smaller than e. much smaller than
In a typical cartel agreement, the cartel maximizes profit when it
a. behaves as a monopolist. b. behaves as a duopolist. c. is flexible in enforcing production targets. d. behaves as a perfectly competitive firm.
If all banks are subject to a uniform 25% reserve requirement and demand deposits are the only form of money, a $1,000 open market purchase by the Fed would cause the money supply to
A. increase by $1,000. B. decrease by $1,000. C. decrease by $4,000. D. increase by $4,000.