An increase in the currency drain ratio
A) decreases the monetary base.
B) increases the quantity of money.
C) increases bank reserves.
D) does not change the amount of the monetary base.
E) does not change the quantity of money.
D
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According to this Application, if you are unemployed and if your peer group is also unemployed
A) you may not be as aggressive in searching for work. B) you have a better chance of finding employment. C) you will want to find a job quickly to encourage your peer group about employment prospects. D) you have little chance of finding a job.
The White House's deficit commission has proposed several ways for the government to reduce the federal budget deficit, including raising the retirement age for Social Security
Other things equal, raising the retirement age for Social Security would tend to ________ the supply of labor and ________ the equilibrium wage rate. A) increase; raise B) increase; lower C) decrease; raise D) decrease; lower
A physicians' professional association supports legislation seeking higher quality medical care. According to the special interest theory of regulation, who likely will benefit most from this legislation?
a. Government, through decreased regulation of physician quality. b. Patients, through reduced prices for medical care. c. Physicians, through increased prices for medical care. d. Hospitals, through decreased for physicians' services. e. Government, since higher quality health care is clearly in the public interest.
Which of the following supply shocks would shift the aggregate supply curve inward?
What will be an ideal response?