The open economy multiplier will decrease if
A. the MPM decreases.
B. the MPM increases.
C. either the MPM or the MPC decreases.
D. the MPC decreases.
Answer: B
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Explain the structure of the circular flow model
What will be an ideal response?
The most frequently used tool of monetary policy is
A. the discount rate. B. reserve requirements. C. open market operations. D. moral suasion. E. credit controls.
Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know
A. too much milk is being produced. B. too little milk is being produced. C. marginal benefit is $1.00. D. marginal benefit is greater than marginal cost.
Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. Assuming that lionfish is a substitute for snapper, what will likely happen to fishing efforts for lionfish if the price of snapper increases?
A) Fishing efforts will increase. B) Fishing efforts will decrease. C) Fishing efforts will remain the same if supply is perfectly inelastic. D) A and C