If the reserve ratio is 8 percent, then an additional $800 of reserves can increase the money supply by as much as
a. $6,400.
b. $8,000.
c. $12,500.
d. $10,000.
d
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Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?
A) new technology that lowers the cost of producing compact discs B) a decrease in the price of a compact disc C) an increase in the price of a compact disc D) a decrease in the number of suppliers of compact discs E) an increase in the price of the resources used to produce compact discs
Strategic trade policy considerations imply that free trade policies should never be pursued
Indicate whether the statement is true or false
Which product is most likely to be most price elastic?
A. Clothing B. Automobiles C. Gasoline D. Milk
If a monopolistically competitive firm is earning profits in the short run:
A. it is acting like a perfectly competitive firm. B. other firms have an incentive to enter the market. C. barriers to entry will allow the firm to enjoy them in the long run as well. D. it should leave the industry before it gets competed away.