Clipping coins created inflation because:
A. it decreased the money supply.
B. it decreased the stock of capital goods.
C. it increased the stock of capital goods.
D. it increased the money supply.
Answer: D
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Which of the following is NOT classified as an advanced economy?
A) Hong Kong B) South Korea C) Russia D) Australia E) the United Kingdom
The simpler a production process is,
a. the greater the cost of production b. the greater the transaction cost of using markets c. the more likely a firm will use the market to organize production d. the more likely a firm will used centralized control to organize production e. the more likely that transaction costs increase by using centralized control of production
Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine the change in the equilibrium level of Consumption (find ?C) following a decrease in investment from 2,500 to 2,000 (?I = -$500).
A. positive $4,500 B. positive $4,000 C. negative $4,000 D. negative $4,500
If the Fed wished to decrease interest rates, it could
A) increase the reserve requirement or conduct an open market sale. B) increase the reserve requirement or conduct an open market purchase. C) decrease the reserve requirement or conduct an open market sale. D) decrease the reserve requirement or conduct an open market purchase.