If the required reserve ratio was lowered
A. banks would be prompted to reduce their lending.
B. the size of the monetary multiplier would increase.
C. the actual reserves of banks would increase.
D. None of the choices are correct.
B. the size of the monetary multiplier would increase.
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Stockholders manage risk by
A) electing the board of directors. B) appointing day-to-day managers. C) diversifying their portfolios. D) having lots of bonds in their portfolios.
Given the characteristics: (1) many buyers and sellers, (2) free entry and exit, (3) perfect information, and (4) heterogeneity of products, monopolistic competition and perfect competition share
A. (1) and (4). B. (1), (2), and (3). C. (2) and (4). D. (2), (3), and (4).
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Since 1950, farm productivity has:
A. advanced twice as fast as in nonfarm sectors of the economy. B. lagged behind productivity advances in the nonfarm economy. C. almost exactly matched productivity increases in the rest of the economy. D. doubled.