The portion of the money supply controlled by a central bank is
a. currency.
b. deposits.
c. reserves.
d. the monetary base.
e. the money multiplier.
D
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Tools used by economists include
A. historical study. B. mathematical reasoning. C. statistical inference. D. All of these responses are correct.
Comment on the following statement: "In an oligopoly, the behavior of any one firm depends on the reaction it expects of all the others in the industry."
What will be an ideal response?
An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice
A) the two countries must engage in international trade with each other. B) each country's marginal cost must equal that of the other country. C) the marginal cost of this industry must equal marginal revenue in the other. D) the monopoly must lower prices in order to sell more. E) they must combine to become a multinational corporation.
If wages and prices are flexible, an anticipated change in the money supply has no effect on
A) money demand. B) nominal interest rates. C) real GDP. D) the inflation rate.