A decrease in the fractional reserve requirement ratio will
A) Alter the slope of the money supply curve. B) Shift the money supply curve to the left.
C) Will decrease the money multiplier. D) None of the above.
Answer: D
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Which of the following is an example of positive technological change?
A) A firm conducts a new advertising campaign. As a result, the demand for the firm's surf boards increases. B) A firm buys an additional machine that it uses to make surf boards. As a result, the firm is able to increase its weekly production of surf boards. C) A firm offers workers a higher wage to work on weekends and at night. As a result, the firm is able to increase its weekly production of surf boards. D) A firm's workers participate in a training program designed to increase the number of surf boards they can produce per day.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 If the oranges were grown and the jam produced in the year 2017, but the marmalade was sold at The Corner Store in the year 2018, what is the contribution of these transactions to GDP in the year 2017?
A. $2.75 B. $2.50 C. $2.00 D. $1.25
What is a key advantage of money over other financial assets such as stocks, bonds, precious metals or real estate?
What will be an ideal response?
Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is an anticipated decrease in aggregate demand to AD2, then according to rational expectations theory, the path for adjustment runs from point:
A. A to B to C
B. A to D to C
C. A directly to C
D. A directly to D