If the Fed wants to limit the money supply, it should ______.
a. buy bonds
b. decrease the interest rate paid on reserves
c. raise the discount rate
d. lower reserve requirements
c. raise the discount rate
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If an economy wants to experience economic growth, what decision must it make and carry out? Explain.
What will be an ideal response?
An increase in the wage rate ______
A. shifts the average total cost curve and the marginal cost curve upward B. shifts the average fixed cost and average variable cost curve upward C. increases average variable cost but does not change marginal cost D. does not change average variable cost but increases average total cost
A country uses strategic trade policy to
A) increase profits that accrue to domestic producers. B) affect the exchange rate of its currency. C) impose countervailing duties. D) allow dumping of imports to increase consumer surplus.
John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?
a. Harry has a comparative advantage in ironing.
b. Harry has a comparative advantage in typing.
c. Harry has an absolute advantage in typing.
d. Harry has an absolute advantage in ironing.
e. Neither can gain from specialization and exchange.