Suppose the proportion of deposits that individuals wish to hold as cash were to rise from 5% to 10%. Then,
A) the money supply will rise because people have more cash.
B) bank deposits will fall by the same amount as if the reserve-holding ratio had risen by 5 percentage points.
C) the supply of high-powered money will rise because cash has risen.
D) the money supply will change by the same amount as if the reserve-holding ratio had risen by 5 percentage points.
B
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The shape of short-run variable cost curve is determined by
a. the firm's effort to minimize cost b. the firm's effort to maximize profit c. competition in the industry d. the marginal productivity of the variable inputs the firm uses e. the money the firm spends
Tools and equipments used in production are:
a. natural resources. b. entrepreneurial resources. c. human capital. d. capital resources. e. labor resources.
According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:
a. are considered to be still-developing countries. b. are the major trade partners of the U.S. c. are considered as underdeveloped economies. d. have highly interdependent economies. e. are considered highly-developed countries.
In the graph shown, what would shift the WAS curve from WAS0 to WAS1?
A. Domestic reservation wages fall. B. Government runs contractionary policy. C. Input prices fall. D. The country's exchange rate appreciates.