If the Federal Reserve sells $10 million in government securities in the open market, with a 10 percent required reserve ratio on deposits, the maximum increase in deposits would be
a. -$50 million.
b. -$100 million.
c. $10 million.
d. $100 million.
e. none of the above
B
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Holding money to meet unplanned expenditures is
A) the precautionary demand for money. B) the transactions demand for money. C) the asset demand for money. D) the capital demand for money.
Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
Keynesians view changes in velocity as the result of changes in
a. income. b. expectations. c. interest rates. d. inflation. e. all of the above.
The above table shows a short-run production function for Albert's Pretzels. The marginal product of labor
A) rises then falls as the amount of capital increases. B) falls then rises as the amount of labor increases. C) is greater than or equal to the average product of labor for all amounts of labor. D) is less than or equal to the average product of labor for all amounts of labor.