If the Fed sells $10 million in bonds to a bank, and the required reserve ratio is 20 percent, then the banking system can:
a. decrease the money supply by up to $10 million.
b. decrease the money supply by up to $40 million.
c. decrease the money supply by up to $50 million.
d. decrease the money supply by up to $2 million.
e. increase the money supply by up to $50 million.
c
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Which of the following is an effective counter argument to the claim that protectionism saves domestic jobs?
A) Protectionism eliminates domestic jobs in export industries. B) Imports create jobs in this country for people selling and servicing imported items. C) The cost of saving domestic jobs through protectionism may be high. D) all of the above
An automobile manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.
A. more elastic; a more flexible production process B. more elastic; greater availability of inputs C. less elastic; a less flexible production process D. more elastic; lower availability of inputs
A new technological innovation would increase
A. the labor force. B. labor hours worked. C. labor productivity. D. population growth.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 50 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. unsustainable since $175 < $25. B. sustainable since $175 < $250. C. sustainable since $20 > $50. D. unsustainable since $350 > $50.