Which of the following policy actions by the Fed would cause the money supply to decrease?
A. an open market purchase of government securities
B. a decrease in required reserve ratios
C. a decrease in the discount rate
D. an open-market sale of government securities
Answer: D
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Which of the following has been confirmed by empirical tests of the Ricardian model?
A) All predictions of the model for a multi-product, multi-country world are highly unrealistic. B) The existence of nontraded goods results in a high degree of specialization among countries. C) International trade has no impact on income distribution. D) The unimportance of economies of scale as a cause of trade. E) Companies tend to export goods in which they have a relatively high level of productivity.
An increase in the price level in Japan relative to the price level in the United States will shift the demand curve for dollars leftward and the dollar depreciates or becomes weaker
a. True b. False Indicate whether the statement is true or false
Since 1960, real GDP has fluctuated to some extent; however, there has been virtually no overall growth when the entire time span is considered
a. True b. False
The cost of child care in a city declines during two subsequent quarters in a year. Which of the following changes is likely to be observed in the labor market on account of this trend? a. The quantity supplied of labor will decrease
b. The quantity of labor demanded will decrease. c. The labor supply curve will shift to the right. d. The demand for labor curve will shift to the left.