When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off
a. True
b. False
Indicate whether the statement is true or false
True
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If a fear of increased bankruptcies of firms causes banks to increase their reserve to deposit ratio, then
a. the money supply and money multiplier will rise. b. the monetary base and the money multiplier will fall. c. there will be no change in the money multiplier, but the money supply will fall. d. the money multiplier and the money supply will fall.
An economic system is the set of rules that define _______ and _______.
A) resources; prices B) who gets to vote; when elections will be held C) market prices; factors of production D) how an economy's resources are to be owned; how decisions about the resources are to be made
Starting from a long-run equilibrium, an increase in government expenditures increases output in the short run but not in the long run.
Answer the following statement true (T) or false (F)
An increase in the price of gasoline above equilibrium will
A. Shift the gasoline supply curve to the right. B. Cause a shortage of gasoline. C. Cause a surplus of gasoline. D. Shift the gasoline demand curve to the right.