In order to fight high inflation the Fed should _______; in order to fight high unemployment the Fed should _______.
A. increase the growth rate of the money supply; increase the growth rate of the money supply
B. decrease the growth rate of the money supply; increase the growth rate of the money supply
C. increase the growth rate of the money supply; decrease the growth rate of the money supply
D. decrease the growth rate of the money supply; decrease the growth rate of the money supply
Ans: B. decrease the growth rate of the money supply; increase the growth rate of the money supply
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If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent, the bank can loan a maximum of
A) $75,000. B) $85,000. C) $95,000. D) $80,000. E) $100,000.
The development of a new good or a new process for making a good is called
A) an innovation. B) a service. C) a factor of production. D) an invention.
What is the cost of production at the number of units where the company is indifferent between the two technologies?
a. $750 b. $850 c. $950 d. $1050
Suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equipment in the cities of Columbus, Cleveland and Cincinnati, Ohio permanently useless. No people are hurt, and no buildings are damaged. After the accident, the wages earned by Ohio workers will
a. increase because the marginal productivities of Ohio workers will increase. b. decrease because the marginal productivities of Ohio workers will decrease. c. decrease because the marginal productivities of Ohio workers will increase. d. increase because the marginal productivities of Ohio workers will decrease.