Decreasing the reserve requirement ratio is
A) a contractionary policy because it lowers the amount of total reserves in the banking system.
B) a contractionary policy because it lowers the amount of excess reserves in the banking system.
C) an expansionary policy because it raises the amount of excess reserves in the banking system.
D) an expansionary policy because it raises the amount of required reserves in the banking system.
Ans: C) an expansionary policy because it raises the amount of excess reserves in the banking system.
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When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above
The Taft-Hartley Act of 1947 outlawed
A) strikes. B) make-work rules and forcing unwilling workers to join a union. C) right-to-work states. D) none of the above.
According to the equation of exchange, if V = 5, P = 100, and Q = 10, the M is:
a. 20. b. 10. c. 500. d. 1,000. e. 200.
In cases of natural monopolies, society would be better off with many firms competing with each other
a. True b. False Indicate whether the statement is true or false