High-powered money minus currency in circulation equals
A) reserves.
B) the borrowed base.
C) the nonborrowed base.
D) discount loans.
A
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A change in relative factor prices will always result in
A) a change in the slope of the isoquants. B) a tangency between the new isocost line and a new isoquant. C) a rotation of the isocost lines. D) All of the above.
A recessionary gap is usually closed in the long run by a(n): a. rightward shift of the short-run aggregate supply curve
b. leftward shift of the short-run aggregate supply curve. c. rightward movement along a fixed short-run aggregate supply curve. d. decrease in aggregate demand. e. leftward movement along a fixed short-run aggregate supply curve.
Does history suggest that most technological progress is labor-saving or labor-augmenting?
Consider a laboratory experiment in which subjects are given the chance to bid on a $20 bill. The initial bid must be at least 50 cents, and each succeeding bid must exceed the previous bid by 50 cents. The rules of the auction specify that when the bidding ceases, the $20 bill will be given to the top bidder, and both the highest bidder and the second highest bidder must pay their final bid. In experimental settings such as this, researchers have found that:
A. no one wants to participate in the auction. B. the top bid is exactly $20 C. the sum of the top two bids typically exceeds $20 D. the sum of the top two bids is typically less than $20.