A reduction in the reserve ratio, ?, will cause
A) an increase in the monetary base (H).
B) a reduction in H and a reduction in the money multiplier.
C) an increase in the money multiplier.
D) a reduction in the money multiplier.
C
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McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products
Indicate whether the statement is true or false
Innovation creates the opportunity to:
A. quickly exit industries. B. lose money spent on research and development. C. earn positive economic profits. D. sustain zero economic profits in a single industry in the long run.
Which of the following theories states that people who are highly risk-averse are less likely to engage in high-risk activities?
a. The theory of moral hazard b. The theory of adverse selection c. The propitious selection theory d. The death spiral theory
The figure below shows the supply and demand curves for jeans in Smallville.
At the price of $60 per pair, sellers offer ________ pairs of jeans per day, and buyers wish to purchase ________ pairs of jeans a day.
A. 24; 8 B. 8; 24 C. 16; 16 D. 60; 20