An increase in the money supply will
A) increase the interest rate.
B) decrease the interest rate.
C) have no affect on the interest rate.
D) decrease the equilibrium quantity of money in the economy.
Answer: B
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The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.
Answer the following statement true (T) or false (F)
For a perfectly competitive firm, at profit maximization
A) production must occur where average cost is minimized. B) market price exceeds marginal cost. C) total revenue is maximized. D) marginal revenue equals marginal cost.
Laws that are used to prevent firms from colluding and setting high prices are called
A) anti-trust laws. B) price ceiling laws. C) anti-cartel laws. D) anti-competition policies.
Why is the change in reserve requirement not frequently used to control the supply of money?