A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
B
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Which of the following statements is true?
a. The U.S. Treasury deals in newly issued bonds and the Fed deals in previously issued (second-hand) bonds. b. The U.S. Treasury deals in previously issued bonds and the Fed deals in newly issued bonds. c. The U.S. Treasury deals in only newly issued bonds and the Fed deals in both new and second-hand bonds. d. The U.S. Treasury deals in both new and second-hand bonds and the Fed only deals in second-hand bonds. e. Both the U.S. Treasury and the Fed deal in both new and second-hand bonds.
Suppose the ABC bank has excess reserves of $4,000 and outstanding checkable deposits of $80,000. If the reserve requirement is 25 percent, what is the size of the bank's actual reserves?
A. $16,000. B. $84,000. C. $24,000. D. $20,000.
The tax revenues of local governments are typically
A. slightly less than their expenditures. B. more than their expenditures. C. equal to their expenditures. D. less than one-half of their expenditures.
Private ownership of most of the means of production is common to
A. capitalism and communism. B. capitalism and fascism. C. capitalism and socialism. D. fascism and communism.