Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is less than one, a decrease in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase
B) increase; increase
C) decrease; decrease
D) increase; decrease
B
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Why is it that the enforcement of contracts by government is so crucial to the conduct of business?
What will be an ideal response?
An advantage of the establishment survey over the household survey of the labor market is that the establishment survey
A) includes the number of self-employed persons. B) provides an estimate of the number of persons unemployed. C) is based on actual payrolls, rather than on unverified answers. D) includes persons employed at newly opened firms.
Which of the following determines equilibrium wages in perfectly competitive labor markets?
a. The government. b. Monopoly employers. c. Where the supply and demand of labor are equal. d. The requirements of a living wage.
If the market supply curve does not capture all of the costs to society of producing an additional unit of good, then:
A. the market will not be in equilibrium. B. the allocation of resources will be efficient. C. the market equilibrium will be socially optimal. D. the market equilibrium will not be efficient.