In an economy that is at full employment, an increase in money supply will result in inflation, unless
A. velocity decreases.
B. tax reduction is proportional to increases in the money supply.
C. real GDP falls.
D. velocity increases.
Answer: A
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In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. Mohammed and Tetah would produce the maximum quantities of cookies and sweaters if
a. Mohammed knitted and baked and Tetah did nothing b. Tetah knitted and baked and Mohammed did nothing c. Mohammed knitted and Tetah baked d. Tetah knitted and Mohammed baked e. Mohammed knitted and baked and Tetah just knitted
An ultimatum game is:
A. the only game played by unions in reality. B. one in which one player makes an offer and the other player has the simple choice of whether to accept or reject. C. a repeated sequential game. D. one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
(Last Word) As a result of the Great Recession of 2007-2009, illegal immigration to the United States:
A. has increased dramatically. B. fell significantly during the recession but has increased since the recession and the illegal immigrant population is growing significantly again. C. illegal immigration to the United States fell significantly and the net flow of illegal immigrants following the recession has been close to zero. D. illegal immigration to the United States fell significantly, and now there is a dramatic backflow that has the total number of illegal immigrants in the United States falling.
A bank run is
A. the transfer of funds from one bank to another. B. a situation when a bank borrows from the Fed's discount window. C. a situation in which a bank borrows at the Federal funds rate. D. a large-scale, panicky withdrawal of deposits from a bank.