When the Fed decreases the reserve requirement, the money supply is expected to:
A. contract and the money multiplier expand.
B. contract, as is the money multiplier.
C. expand and the money multiplier contract.
D. expand, as is the money multiplier.
Answer: D
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A perfectly competitive market is characterized by
A) high barriers to entry. B) firms that are price setters. C) firms facing a downward sloping demand curve. D) no restrictions on entry into the market.
What are the implications of the law of conservation of matter and energy for recycling and waste disposal?
A tax
a. lowers the price buyers pay and raises the price sellers receive. b. raises the price buyers pay and lowers the price sellers receive. c. places a wedge between the price buyers pay and the price sellers receive. d. Both b) and c) are correct.
At a price of $9.99, Danielle buys 3 digital books per month. When the price decreases to $7.99, Danielle buys 4 digital books per month. Jason says that Danielle's demand for digital books has increased. Is Jason correct?
A) Yes, Jason is correct. B) No, Jason is incorrect. Danielle's demand has decreased. C) No, Jason is incorrect. Danielle's quantity demanded has decreased, but her demand has stayed the same. D) No, Jason is incorrect. Danielle's quantity demanded has increased, but her demand has stayed the same. E) No, Jason is incorrect. Danielle's quantity demanded has increased and her demand has decreased.