An increase in the reserve requirement:
A. increases the money supply, which leads to increased interest rates and a decrease in GDP.
B. increases the money supply, which leads to decreased interest rates and a decrease in GDP.
C. decreases the money supply, which leads to increased interest rates and a decrease in GDP.
D. decreases the money supply, which leads to decreased interest rates and a decrease in GDP.
Answer: C
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If a nation has a higher level of technology than another nation it can produce:
A. more outputs with the same level of physical capital. B. less with the same amount of physical capital. C. more with no use of human capital. D. the same output with the same level of inputs.
If a coin toss comes up heads five times in a row, on the sixth flip the odds are better that this coin will come up tails
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low. b. When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers. c. When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries. d. Economies of scale eliminate the potential gains from international trade.
Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will ________, and the number of workers who are employed will ________.
A. increase; not change B. increase; increase C. decrease; increase D. increase; decrease