What is the immediate effect when Bank A lends $1,000 to a local business?
a. The money supply increases by $1,000.
b. The money supply decreases by $1,000.
c. Bank A's liability increases by $1,000.
d. Bank A's excess reserves increase by $1,000.
e. Bank A's demand deposits decrease by $1,000.
a
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Deliberate actions by a central bank to influence the exchange rate are known as
A) current account actions. B) foreign-exchange market interventions. C) dollar-value operations. D) foreign-commerce maneuvers.
According to the Lucas critique, changes in economic policy are likely to have important effects on
A) the available amounts of natural resources. B) the behavior of consumers and firms. C) the preferences of consumers. D) none of the above
In the long run, a monopolistically competitive firm will find
a. its demand curve shifting until price equals average total cost b. its cost curve shifting until price equals average total cost c. its demand curve shifting until marginal revenue equals marginal cost d. its cost curve shifting until marginal revenue equals marginal cost e. no changes in its demand or cost curves if it is earning an economic profit
Joe earns $50,000 per year, Brian earns $100,000 per year, and Pammy earns $200,000 per year. Based on the table demonstrating three tax systems, who is likely to be the most concerned about which tax system is used as it applies to take home pay?
a. Joe and Brian
b. Joe
c. Brian
d. Pammy