Why didn't the surge in the monetary base between 2008-2012 lead to a similar surge in the money supply?
A) The currency-deposit ratio rose significantly, resulting in a much smaller money multiplier.
B) The excess reserve-deposit ratio rose significantly, resulting in a much smaller money multiplier.
C) The Fed increase the required reserve ratio, resulting in a much smaller money multiplier.
D) Nonborrowed reserves declined, offsetting the increase in the monetary base.
B
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Which of the following decreases the demand for an inferior good?
A) an increase in income B) a decrease in the price of a complement C) a decrease in income D) an increase in the price of a substitute
If the discount rate is lowered further below the market interest rate, banks tend to
A) lend more to the Fed. B) lend less to the Fed. C) borrow more from the Fed. D) borrow less from the Fed.
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, what would her variable cost include?
A. The measuring board B. The cost of the fabric C. Her variable cost would be zero if she produced zero bags. D. The sewing machine
Which countries demonstrate the theory of convergence with their closing of the gap with world leaders?
a. Hong Kong b. Singapore c. South Korea d. All of the above