A commercial bank sells a $10,000 government bond to a securities dealer. The dealer pays for the bond in cash, which the bank adds to its vault cash. The money supply has:
A. Decreased by $10,000 multiplied by the reciprocal of the required reserve ratio
B. Decreased by $10,000
C. Increased by $10,000
D. Not been affected
B. Decreased by $10,000
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If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in
A) moral hazard. B) foreign direct investment. C) portfolio investment. D) adverse selection.
Consumer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.
Spyware The Dunder-Miflin Paper Company has been suffering an even greater spate of shirking by the accounting staff ever since its employees got access to the Internet on their desktop computers. How does installing spyware on computers reduce the shirking? How does it affect the rewards the company provides to employees for reaching performance measures?
You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. Your firm's maximum profits are:
A. 0. B. 170. C. 66. D. 120.