A change in the reserve requirement changes
A) the monetary base.
B) the money multiplier.
C) the discount rate.
D) all of the above
E) none of the above
B
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________ describes the relationship between consumption spending and disposable income
A) The liquidity trap B) The consumption function C) Household wealth D) The paradox of thrift
Suppose a worker signs a contract containing a 7 percent nominal wage increase with inflation expected to be 5 percent. Inflation turns out to be 10 percent, but the contract also contains 50 percent COLA protection
The worker's real wage under the contract A) falls by 3.0 percent. B) rises by 0.5 percent. C) rises by 2.0 percent. D) rises by 1.0 percent. E) falls by 0.5 percent.
The monopolist will choose the price and output combination at which
A) MC equals AR. B) MC equals MR. C) MC equals price. D) MR equals AR.
Explain how a diversified portfolio can reduce fluctuations in returns even when the economy as a whole is experiencing contractions and expansions.
What will be an ideal response?