Assume a nation has a fixed exchange rate, and the central bank decreases the reserve requirement. What is the net effect on the money supply (given)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The change in the money supply is ambiguous.
b. The money supply can not change. This is an example of the "Impossible Trilogy."
c. The money supply rises.
d. The money supply falls.
.B
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Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would
A) increase the measured labor force participation rate. B) increase the measured unemployment rate. C) decrease the number of persons in the working-age population. D) decrease the number of persons in the labor force.
The conventional monetary policy to fight recessions would be to
A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run a government surplus. D. run a government deficit.
If a state government reduces property taxes for residents at the same time that it increases the state income tax, what will happen to the expenditures schedule of the residents of this state?
a. It shifts upward. b. It shifts downward. c. It becomes less steep. d. It becomes steeper. e. It does not change.
The ATC curve is __________ and the AVC curve is __________.
A. U-shaped; U-shaped B. not U-shaped; not U-shaped C. U-shaped; not U-shaped D. not U-shaped; U-shaped