If the Fed were to increase the required reserve rate from ten percent to twenty percent, the simple deposit expansion multiplier would:
A. increase by 10 percent.
B. decrease by a factor of ten.
C. double.
D. be half as large as it was before the increase.
Answer: D
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and an import quota of 400 units is imposed on the product, then the equilibrium price in Marketopia would be ________ and the total quantity available in Marketopia would be ________ units.
A. $7; 1,800 B. $6; 1,800 C. $6; 2,200 D. $7; 2,000
Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the MC curve
A) has a positive slope. B) shows the effect of increasing marginal returns. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
Why does the numerical value of the multiplier fall when an income tax is added to the income-expenditure model?
The Monetary Control Act of 1980 extended the Fed's authority to