The money supply will decrease if
A) either the monetary base or the money multiplier increases in value.
B) either the monetary base or the money multiplier decreases in value.
C) either the monetary base increases in value or the money multiplier decreases in value.
D) either the monetary base decreases in value or the money multiplier increases in value.
B
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You are more likely to hire your teenage child to cut your lawn than a landscaping firm
a. since the teenager is paid each time when she finishes and the landscaping firm bills your credit card each month b. if the teenager has a lower opportunity cost of cutting the lawn than the landscaping firm does c. because the teenager is less likely to have the specialized tools necessary to complete the job quickly d. due to the bounded rationality of the diversified landscaping firm e. when it does not take a substantial amount of time and effort to find a reputable landscaping firm to do the job
During a recession, banks are likely to
A. experience a deficit. B. decrease deposits. C. hold excess reserves. D. Banks are likely to do all of these choices.
Assume we have a stock currently worth $100. We also assume the interest rate is zero, and we can buy options for this stock with a strike price of $100. If the stock can rise or fall by $5 with equal probability over the option period, and the option cannot be exercised until the expiration date, what is the time value of the option?
A. $5 B. $10 C. $0 D. None of the answers is correct.
If the elasticity of demand is 3, and the price rises by 15 percent, then
A. The percentage change in quantity demanded will fall as income rises. B. The quantity demanded will rise by 4.5 percent. C. The quantity demanded will fall by 45 percent. D. The quantity demanded will increase by 5 percent.