If the reserve ratio is 100-percent, then a new deposit of $1000 into a bank account
a. eventually increases the money supply by $1000.
b. leaves the size of the money supply unchanged.
c. eventually decreases the size of the money supply by $1000.
d. eventually increases the money supply by $2000.
b
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The reason only newly produced goods and services are counted in GDP is that ________
A) it is very difficult to impute a value to used goods B) most expenditures on used goods and services take place outside the market C) it does not help economists make better economic predictions because second-hand goods rarely have any residual value D) it allows economists to avoid double counting the production of goods and services E) none of the above
An example of third parties in the market of automobiles is
A) a pedestrian that is affected by the polluted air from automobiles. B) a seller of an automobile. C) a buyer of an automobile. D) None of the above belongs to third parties.
Making decisions with outcomes are uncertain is ________ and ________.
A) common; easy B) uncommon; easy C) common; difficult D) uncommon; difficult
Protective tariffs help a nation reach which of the following goals?
a. Decreased domestic consumer prices. b. Increased domestic employment. c. Increased amount of goods for consumers to purchase. d. Increased competition among domestic and foreign producers. e. None of these.