Everything else held constant, an increase in the money market fund ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
A
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Which of the following is NOT a problem caused by black markets?
A) Legally banned goods are traded in black markets. B) Black markets pose a threat to legitimate businesses. C) Black markets lead to an inefficient use of society's resources. D) Black markets lead to a fall in the demand for goods.
The difference between an import quota and a tariff that results in the same domestic price is
a. none; they are the same b. the quantity demanded is higher under the tariff c. the world price is higher under the quota d. the tariff revenue goes to the domestic government; quota benefits may go to foreigners e. none because both quotas and tariffs are illegal
Since 1970 the United States' income distribution has become more equal
a. True b. False Indicate whether the statement is true or false
When a country imposes capital controls, it is controlling the
A) amount of money flowing in or out of the country. B) amount of reserves that banks must hold. C) portion of bank deposits that must be held at its central bank. D) portion of bank deposits that must be used for loans to the government.