If the Fed increases the required reserves, financial institutions would be expected to lend out:
A. less than before, increasing the money supply.
B. more than before, decreasing the money supply.
C. less than before, decreasing the money supply.
D. more than before, increasing the money supply.
Answer: C
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An increase in total factor productivity shifts the PPF
A) upward, but does not change its slope. B) upward, and also changes its slope. C) downward, but does not change its slope. D) downward, and also changes its slope.
Subsidies for silver, the Bland-Allison Act of 1878, and the Silver Purchase Acts of 1890 and 1933 all provide examples of government programs
(a) based on careful analysis of benefits relative to costs. (b) designed to redistribute income from the rich to the poor. (c) that reflect the political attractiveness of special-interest issues. (d) that promote the general welfare.
The labor demand curve is based on the firm's:
a. average revenue curve. b. marginal product curve. c. marginal cost curve. d. average cost curve. e. marginal revenue product curve.
If a competitive firm cannot earn profit at any level of output during a given short-run period, then which of the following is LEAST likely to occur?
A) It will shut down in the short run and wait until the price increases sufficiently. B) It will exit the industry in the long run. C) It will operate at a loss in the short run. D) It will minimize its loss by decreasing output so that price exceeds marginal cost.