An increase in the reserve requirement
A. increases the money multiplier and increases the money supply.
B. reduces the money multiplier and reduces the money supply.
C. increases the money multiplier and reduces the money supply.
D. none of these.
Answer: B
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If the U.S. interest rate falls while the British interest rate remains constant, which of the following will happen in the market for pounds?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the pound b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the pound d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the pound.
Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pair a week, the MC of the twelfth pair is $84, and the MR of that unit is $70 . What would you advise Mr. Raiman to do?
a. shut down b. produce more custom-made shoes c. stay at 12 pairs a week d. produce fewer custom-made shoes e. decrease price
The 3 key economic questions include all of the following EXCEPT
A) "how do we produce these products?" B) "where should these products be produced?" C) "who consumes the products?" D) "what products do we produce?"
Figure 16.4The pollution tax in Figure 16.4:
A. reduces equilibrium output. B. reduces pollution associated with the production of the good. C. raises equilibrium price. D. All of these