If the Federal Reserve increases the growth rate of the money supply, in the long run
a. inflation is higher and the unemployment rate is lower.
b. inflation is higher while the unemployment rate is unchanged.
c. inflation is unchanged while the unemployment rate is lower.
d. None of the above is correct.
b
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There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:
A. $20,000,000 B. $10,000,000 C. $6,250,000 D. $5,000,000
The marginal revenue of a monopolist falls below price because the firm
A. Has an upward-sloping marginal cost curve. B. Confronts a downward-sloping demand curve. C. Faces a market demand curve that is inelastic. D. Is not limited by market demand.
The Business Cycle has three main parts, which of these is not one of them?
a. Expansion b. Recession c. Inflation d. Recovery
Under a tariff, the domestic government gains revenue, but under an import quota it does not, unless it sells the quota rights
a. True b. False