During the Great Depression, the money supply fell 28%. During that same time, the monetary base ____ and the currency-to-deposit ratio and reserve-to-deposit ratios both _____
a. rose; fell
b. rose; rose
c. fell; rose
d. fell; fell
B
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A large oligopolistic firm that unilaterally makes changes in price which competitors tend to follow is known as a: a. price leader
b. price maker. c. dominant strategy firm. d. cartel leader.
According to the Incentive Principle, people will be less likely to smoke if the government:
A. invests more money in cancer research. B. increases taxes on smoking-cessation devices such as nicotine patches. C. increases taxes on cigarettes, effectively raising the price. D. subsidizes hospitals treating lung disease.
Balancing the budget over the business cycle involves running _________ during recession years and _____ during economic booms.
Fill in the blank(s) with the appropriate word(s).
Figure 34-9
?
In Figure 34-9, hostilities break out between Pastaland and Pestoland after Pestoland violates the Treaty of Basil. Consequently, trade stops and the price of pasta
A. rises to OJ in both countries. B. falls to OC in both countries. C. falls to OC in Pastaland and rises to OJ in Pestoland. D. rises to OJ in Pastaland and falls to OC in Pestoland.