The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to remain the same.
.D
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Which of the following would reduce the money multiplier?
A) bank reductions in desired reserve holdings B) reducing the reserve ratio C) cash drains from banks D) bond purchases by the Fed
If the nominal exchange rate rises and price levels stay constant, the real exchange rate will
A) rise. B) fall. C) stay constant. D) could rise, fall or stay constant.
When the transfer price is increased
a. the buying division will chose to purchase less from the selling division b. the buying division will chose to purchase more from the selling division c. the selling division will chose to purchase less from the buying division d. the selling division will chose to purchase more from the buying division
Suppose Sam's Shoe Co. makes one kind of shoe. An example of a fixed cost for this company would be:
A. the lease for the factory building. B. the leather needed to make the shoes. C. the needles for the sewing machines that need to be replaced after sewing every 1,000 pairs. D. All of these are examples of fixed costs.