Which of the following will cause the money supply to decline?
A) lowering the discount rate
B) raising the required reserve ratio
C) an open market purchase
D) an open market sale
E) b and d
E
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If the money supply increases this will cause the interest rate to rise, investment to fall and GDP to fall
a. True b. False Indicate whether the statement is true or false
What causes the market supply curve to shift rightward?
a. Increase in the aggregate demand b. Decrease in the number of existing firms c. Decrease in the price level d. Increase in the cost of production e. Entry of new firms
The basic goals of total utility maximization, total profit maximization, and total welfare maximization explain most market activity.
Answer the following statement true (T) or false (F)
Refer to the table and information below. What is the total amount that the government should spend on construction projects?
A government is considering undertaking one or more construction projects. The estimated marginal costs and benefits of each project are given in the table.
A. $8 million
B. $14 million
C. $19 million
D. $37 million