The money supply increases when the Fed
a. lowers the discount rate. The increase will be larger the smaller the reserve ratio is.
b. lowers the discount rate. The increase will be larger the larger the reserve ratio is.
c. raises the discount rate. The increase will be larger the smaller the reserve ratio is.
d. raises the discount rate. The increase will be larger the larger the reserve ratio is.
a
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In the United States, long-term poverty affects
a. more families than short-term poverty. b. an equal number of families as short-term poverty. c. slightly fewer families than short-term poverty. d. many fewer families than short-term poverty.
According to the structural stagnation hypothesis, expansionary macro policy tends to lead to:
A. goods inflation. B. goods deflation. C. low exchange rates. D. asset price inflation.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount customers would have paid per pumpkin after the imposition of this tax would have been
A. $0. B. $5.50. C. $7.25. D. $8.50.
Developing countries have benefited from globalization, because globalization can do all of the following except
A. help spread new and advanced technology and aid in capital accumulation int he developing world B. impose trad barriers and tariffs on imported goods so as to protect domestic industries C. open the developing countries' market to foreign trade and thus help create a more robust economy D. take poor countries out of a low saving-investment trap by providing foreign direct investment and foreign portfolio investment