The primary reason that U.S. money has value is that it
a. is backed by gold
b. is fiat money
c. is accepted by others in exchange for goods and services
d. is commodity money
e. has a fixed value established by the Federal Reserve.
C
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Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?
When would a rise in labor's marginal productivity lead to a leftward shift in workers' labor supply curve?
a. When workers are employed by a monopsony. b. When workers earn more nonlabor income from their capital. c. When workers engage in intertemporal substitution. d. When workers reduce their investment in human capital.
Which of the following is a general rule of business etiquette in the given city?
A) Beijing, China: If someone offers you his or her business car, accept it with both hands, read it immediately, and then present your business card to the person. B) Hong Kong, China: It is considered impolite to run out of business cards. C) Sydney, Australia: It is important to know about the latest sports matches. D) Berlin, Germany: When out with German business associates, try not to talk about sports. E) All of the above are examples of proper business etiquette around the world.
If price of a product falls
A. the budget line rotates to the right. B. the budget line rotates to the left. C. the marginal utility of the product also falls. D. the indifference curve will shift to the left.