Suppose the Fed sells $100 of government securities. If the desired reserve ratio is 20 percent and there is no currency drain, then the quantity of money
A) decreases by $500.
B) decreases by $80.
C) decreases by $400.
D) decreases by $100.
E) increases by $100.
A
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Refer to the figure above. Domestic consumers of this product in A would most prefer
A) a customs union with C. B) a customs union with B. C) a free trade agreement with C. D) no agreement with either country.
Specialization and trade can take place only if a country is endowed with more of something compared to other countries
a. True b. False Indicate whether the statement is true or false
The IMF comprises of 50 member countries including all developed countries, and a few countries of Asia and Latin America
a. True b. False Indicate whether the statement is true or false
The law of diminishing returns states that, ceteris paribus, the
A. MPP of labor declines as more of it is employed with a given quantity of other (fixed) inputs. B. MPP of labor declines as product price declines. C. MPP of labor declines as the wage rate falls. D. MPP of labor declines as additional land, raw materials, and other factors of production are employed.