Assume the Federal Reserve increases the required reserve ratio from 10 to 20 percent and reserves are $80 billion. Then the change in the money supply will be
a. $80 billion.
b. $20 billion.
c. $400 billion.
d. $800 billion.
e. none of the above
C
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If net exports are positive,
A) capital inflows must be greater than capital outflows. B) net foreign investment is negative. C) net foreign investment is also positive. D) Both A and B are correct.
The real wage equals the nominal wage ________ the CPI, all times 100
A) plus B) divided by C) minus D) times
Profit functions are homogeneous of degree:
a. zero in input and output prices. b. zero in input prices. c. one in input and output prices. d. one in input prices.
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The exam system thus allows the ABA to act like a
a. monopsony. b. union that can restrict the supply of lawyers. c. union that can increase the number of lawyers. d. None of the above is correct.