A decrease in the reserve requirements causes
A. reserves to rise.
B. reserves to remain the same.
C. the money multiplier to rise.
D. the money multiplier to fall.
Answer: C
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Globalization does not mean:
A) the homogenizing of markets. B) when one product or one brand is sold in many different international markets. C) the increase in trade among nations. D) the establishment of manufacturing plants in more than one nation. E) the purchase of supplies from foreign firms.
Dumping is a trade practice in which countries sell goods in a foreign market at cheaper prices than the goods can be produced domestically
a. True b. False Indicate whether the statement is true or false
A society consists of three individuals: Larry, Margaret, and Nina. In terms of income and utility, Larry is currently best-off, Margaret ranks in the middle, and Nina is worst-off. Which of the following statements is correct?
a. Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility. b. Liberalism suggests that government policies should strive to maximize the sum of Larry's utility and Nina's utility. c. Libertarianism suggests that government policies should strive to make Nina better off at the cost of Larry and Margaret. d. Utilitarianism suggests that the government policies should strive to make Nina better off than Margaret.
According to the classical model, more saving leads to more investment because
A. the people who save are the same people who invest. B. the interest rate adjusts to keep investment equal to saving. C. the interest rate is set by the federal government. D. saving and investment are two sides of the same activity.