If the Federal Reserve buys $500 of government securities when the required reserve ratio is 50 percent, the maximum potential change in the money supply is a(n)
A. decrease by $1,000.
B. increase by $1,000.
C. decrease by $500.
D. increase by $500.
Answer: B
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According to the misperceptions theory, an unanticipated decrease in the money supply shifts the AD curve ________, causing output to ________ in the short run
A) up and to the right; rise B) up and to the right; fall C) down and to the left; rise D) down and to the left; fall
Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?
a. Mexico b. Brazil c. the United States d. All of the above are correct.
Multiplier effect is the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending.
Answer the following statement true (T) or false (F)
The graph shows the labor market for fast-food workers in Sioux City. If the government sets a minimum wage of $7 an hour, then the labor market is ________, and marginal benefit ________ marginal cost
A) inefficient; is less than B) inefficient; equals C) efficient; equals D) inefficient; is greater than E) inefficient; cannot be compared to