A direct relationship exists when:
A. there is no association between two variables.
B. one variable increases and there is no change in the other variable.
C. one variable increases and the other variable increases.
D. one variable increases and the other variable decreases.
Answer: C
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An increase in the reserve requirement
A) increases the money supply, which leads to increased interest rates and a decrease in GDP. B) decreases the money supply, which leads to increased interest rates and a decrease in GDP. C) decreases the money supply, which leads to decreased interest rates and a decrease in GDP. D) increases the money supply, which leads to decreased interest rates and a decrease in GDP.
What is meant by the "law of one price"? In discussing the law of demand, Hubbard and O'Brien claim there has been no evidence of an exception to the law (that is, no evidence of an upward-sloping demand curve)
Are there exceptions to the law of one price?
When the Fed increases the money supply and creates inflation, it erodes the real value of the unit of account and makes it more difficult for investors to sort successful from unsuccessful firms
a. True b. False Indicate whether the statement is true or false
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total fixed cost of producing 80 units of output?
A. $25 B. $200 C. $33 D. $85