Assume that the currency—deposit ratio is 0.2 and the reserve—deposit ratio is 0.1. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action will increase the money supply by
A) $1 million.
B) $2 million.
C) $3 million.
D) $4 million.
D
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The jet noise assaulting the ears of a baggage handler is not an externality or spillover cost if
A) baggage handlers are required by law to wear hearing protectors. B) baggage handlers are required by their employers to wear hearing protectors. C) baggage handlers freely choose to wear hearing protectors. D) baggage handlers find the pay sufficiently attractive to stay with their jobs. E) the noise does no permanent damage to their hearing.
Which of the following would cause the dollar to appreciate?
A) an increase in the demand for imports from foreign countries B) an increase in the demand for dollars C) a decrease in the demand for dollars D) an increase in the supply of dollars
The process involved in bringing oil to world markets can take years. Substitutes for oil-based products such as gasoline are limited. As a result
A) the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time. B) the supply of oil is very elastic and the demand for oil is very elastic over short periods of time. C) the supply of oil and the demand for oil shift to the right over short periods of time. D) the supply of oil and the demand for oil are both perfectly elastic over short periods of time.
Suppose the minimum wage was $0.25 per hour in 1938 and the CPI in that year was 11.5
If the CPI in 1990 was 130.7, what is the real value of the 1938 minimum wage in terms of 1990 dollars? The real value of the 1990 minimum wage in terms of 1990 dollars is $4.25. Has the real value of the minimum wage declined since 1938?