If the Federal Reserve buys $500 of government securities when the required reserve ratio is 20 percent, the maximum potential change in the money supply is a(n)
A) increase by $100.
B) increase by $2,500.
C) decrease by $100.
D) decrease by $2,500.
B
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The ability of a central bank to set monetary policy instruments is
A) political independence. B) goal independence. C) policy independence. D) instrument independence.
One reads the following in a newspaper: "Today the president and Congress agreed to impose new restrictive quotas on Japanese cars coming into the country." As a result, an economist would predict that the
A) supply of cars in the country will remain the same and the (average) price of cars will fall. B) supply of cars in the country will fall and the (average) price of cars will rise. C) supply of cars in the country will rise and the (average) price of cars will fall. D) demand for cars in the country will fall and the (average) price of cars will rise. E) demand for cars in the country will rise and the (average) price of cars will rise.
Goods and services bought by the government account for about ________ percent of total production
A) 8 B) 2 C) 67 D) 17 E) 35
If the price elasticity of demand is unit elastic, a 10 percent increase in price will result in a 10 percent increase in revenue
Indicate whether the statement is true or false