If the actual money multiplier equals the potential money multiplier and if the Fed wishes to reduce the money supply by $1 million when the reserve ratio is 20 percent, then the Fed should
A) sell $200,000 of government securities. B) sell $500,000 of government securities.
C) buy $200,000 of government securities. D) buy $500,000 of government securities.
A
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Indicate whether the statement is true or false
Refer to Table 10.1. The value of the government purchases multiplier in this economy is
A) 0.2. B) 0.8. C) 4. D) 5.
The parties to a contract usually try to minimize the risks of costly opportunistic behavior by putting appropriate provisions in it
Indicate whether the statement is true or false
Antitrust cases against Eastman Kodak, International Harvester, United Shoe Machinery, and United States Steel resulted in the firms
A. being fined and then dissolved. B. settling their cases with consent decrees. C. being found not guilty of unreasonable conduct under the Sherman Act. D. being found guilty of tying under the Clayton Act.