Suppose that the Federal Reserve issued bonds in the amount of $45 million and the reserve requirement was 10%, what would be the resulting change to the money stock?
A) $45 million
B) $450 million
C) $4.5 million
D) The bond issuance would not impact the money stock only the monetary base.
B
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During periods of inflation, which function of money is most severely affected?
A) medium of exchange B) unit of account C) means of payment D) store of value
Economists object to monopolies on the grounds that monopolies:
a. can fix prices at levels that are too high. b. lack productive efficiency. c. lack allocative efficiency. d. can only exist hypothetically.
The value of a worker's marginal product of labor:
A. only depends on a worker's stock of human capital. B. is lower for workers with more human capital. C. is not affected by a worker's stock of human capital. D. is higher for workers with more human capital.
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.