The Reserve Bank of Glassen is the apex banking institution in the country of Glassen. Money supply in Glassen will increase when:
a. the Reserve Bank of Glassen buys bonds from commercial banks
b. the Reserve Bank of Glassen raises the required reserve ratio for commercial banks.
c. the Reserve Bank of Glassen sells government bonds to commercial banks.
d. the Reserve Bank of Glassen raises the discount rate for commercial banks.
e. the Reserve Bank of Glassen prints new checks.
a
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In the market period, a steel manufacturer has a __________ productive capacity.
Fill in the blank(s) with the appropriate word(s).
Producers have an incentive to produce those goods most desired by consumers at the lowest price in
A. a centrally planned economy. B. a communist economy. C. a market economy. D. All of the choices are true.
Which of the following is TRUE for a single-price monopolist?
A) P > MR B) P < MR C) P = MR D) P = elasticity of demand
Using the equation of exchange, if inflation is 1.5%, real output grows by 3.0%, and the growth rate of money is 5.0%, the change in the velocity of money is:
A. +4.5%. B. -0.5%. C. +0.5%. D. Zero; velocity is constant.