If the money multiplier decreased from 20 to 12.5, then
a. the Fed increased the reserve ratio from 5 percent to 8 percent.
b. the Fed increased the fed funds rate from 5 percent to 8 percent.
c. the Fed decreased the reserve ratio from 8 percent to 5 percent.
d. the Fed decreased the fed funds rate from 8 percent to 5 percent.
a
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Which of the following would be inconsistent with the notion of a competitive market process and the notion of perfect competition?
A) Price searching behavior B) Predatory pricing C) Advertising D) Licenses and other legal restrictions on entry E) Hostile takeovers
In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
A) tastes and preferences. B) military capabilities. C) the size of their economies. D) relative abundance of factors of production. E) labor productivities.
The motive that drives firms to enter or exit an industry is
A) utility. B) governmental. C) economic profit. D) accounting costs.
The balance of payments always balances, because each of the specific accounts must, by definition, be in balance
a. True b. False