By reducing the required reserve ratio, the Fed can not only create excess reserves but also increase the money multiplier
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following will cause the demand curve for cable TV services to shift to the left?
A) a rise in the price of cable TV services B) a decrease in average incomes of cable TV subscribers C) an increase in population D) the creation of several hit TV series
Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $25 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $1,400. e. Stay at the current output; the firm is losing $1,400.
With time, an appreciation in the value of the nation's currency in the foreign exchange market would cause
a. the nation's imports to increase and exports to decline. b. the nation's exports to increase and imports to decline. c. both imports and exports to decline. d. both imports and exports to rise.
Supply-side economists focus on the expansion of capacity through lower marginal tax rates and policies to increase production incentives.
Answer the following statement true (T) or false (F)