Which of the following lists two things that both increase the money supply?
a. make open market purchases and raise the reserve requirement ratio
b. make open market purchases and lower the reserve requirement ratio
c. make open market sales and raise the reserve requirement ratio
d. make open market sales and lower the reserve requirement ratio
B
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Public goods are goods that we all agree are useful and therefore are all willing to pay for. This implies that there is no efficiency problem in the production of public goods.
Answer the following statement true (T) or false (F)
Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call, which of the following is FALSE?
A) Sandy has a comparative advantage in sales calls. B) Tim has a comparative advantage in sales calls. C) Sandy has a comparative advantage in economics reports. D) Sandy has an absolute advantage in both economics reports and sales calls.
The primary argument against the rational-expectations assumption is that
A. it assumes that unexploited opportunities for profit persist in the economy. B. people expect certain outcomes from the government's policy actions. C. the costs of formulating rational expectations are very low. D. it requires households and firms to know too much.
A judicial system for resolving disputes creates benefits even for people who never use it because
A) people are compelled to obey court decisions whether they want to or not. B) judicial decisions generate uniform rules, which everyone can count on. C) silence gives consent. D) the social contract entitles everyone to share in the benefits from goods produced by government.