If countries that export a primary product form an effective international cartel, then

A. the importing countries will be forced to reduce their import barriers.
B. world efficiency will increase.
C. the world supply of the primary product will expand substantially.
D. output of the primary product will fall and its price will rise.


Answer: D

Economics

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People are forced to economize because of

A. competition. B. pressure to conform. C. scarcity. D. the absence of money.

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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 20 percent, an initial deposit of $850 will lead to total deposits of:

A. $425. B. $850. C. $4,250. D. $42,500.

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If the MPS is 0.1, the government spending multiplier is

A. 10. B. 5. C. 2. D. 1.11.

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