At one time, people in a certain country had no access to banks; they relied exclusively on currency. Then, a fractional-reserve banking system was created. As a result, the money supply
a. increased. The central bank could have reduced the size of this increase by buying bonds.
b. increased. The central bank could have reduced the size of this increase by selling bonds.
c. decreased. The central bank could have reduced the size of this decrease by buying bonds.
d. decreased. The central bank could have reduced the size of this decrease by selling bonds.
b
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Which of the following will be counted as an expenditure in the measurement of GDP? (Assume that none of the transactions is concealed from the relevant authorities.)
A) the value of a used automobile that remains unsold on the dealer's lot B) purchase of a lamp at a neighborhood garage sale C) purchase, using foodstamps, of a loaf of bread D) payment by a parent to her child for doing household laundry E) purchase of flour by a bakery
When total revenue and price are inversely related, demand is
A) unit-elastic. B) inelastic. C) elastic. D) not related.
Which of the following statements about price discrimination is correct?
a. Price discrimination is always more profitable than charging a single price. b. A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product. c. To be successful, a price discriminator must assure that items can be resold between high- and low-price groups. d. To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.
On Tuesday, a movie theater discounts tickets to all shows. What would we expect to see happen to popcorn on Tuesdays?
A. Increased demand for popcorn B. Decreased supply of popcorn C. Decreased demand for popcorn D. Increased supply of popcorn