If the currency to deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline
B) decline; increase
C) increase; decline
D) increase; increase
D
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Foreign aid to a poor country might
A) improve its long run economic growth prospects. B) interfere with its domestic affairs. C) be allocated to useless projects and thereby reduce its growth rate. D) be used to keep its ruling party in power rather than spur economic growth. E) do any of the above.
A vertical demand curve results in
A) no change in quantity when the supply curve shifts. B) no change in price when the supply curve shifts. C) no change in the supply curve being possible. D) no change in quantity when the demand curve shifts.
Which of the following is not a barrier to entry which leads to monopoly power
a. economies of scale b. control over key patents c. control of an essential resource d. government-imposed barriers to entry e. homogeneous product
To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000 . If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
a. install the light because the expected benefit of $400,000 is greater than the cost. b. install the light because the expected benefit of $45,000 is greater than the cost. c. not install the light because the expected benefit of $45,000 is only equal to the cost. d. not install the light because the expected benefit of $40,000 is less than the cost.