An increase in the reserve requirement would:
A) decrease excess reserves and reflect an expansionary monetary policy.
B) decrease excess reserves and reflect a contractionary monetary policy.
C) increase excess reserves and reflect an expansionary monetary policy.
D) increase excess reserves and reflect a contractionary monetary policy.
B
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Refer to the table above. The opportunity cost per dollar of value added in stitching shoes by workers in Laborland is ________
A) $0.25 B) $0.50 C) $2 D) $4
Economists view pollution as an economic problem that arises because
a. private enterprise always minimizes the amount of pollution produced b. profitable firms rarely pollute c. as the economy grows, the level of pollution declines d. firms that pollute do not pay the full social cost of producing their output e. pollution costs are borne by the consumer
Table 36-2 ? Domestic ? ? ? GDP Expenditure ? Exports Imports Total Expenditures (Y) C+ I + G (X) (IM) C+ I + G + (X?IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ In Table 36-2, assume that exports rise to $900. What is the new equilibrium GDP?
A. $5,000 B. $4,500 C. $4,000 D. $3,500
Which of the following will increase aggregate demand in the United States?
A. a higher price level B. an increase in the real interest rate C. an increase in wealth due to a substantial appreciation in the value of stocks D. a decrease in real income in Japan and Western Europe