A decrease in the required reserve ratio __________ the money supply; an open market purchase __________ the money supply
A) decreases; decreases
B) decreases; increases
C) increases; increases
D) increases; decreases
C
You might also like to view...
A monopolist who is unable to price discriminate: a. will never produce in the output range where marginal revenue is positive. b. will never produce in the output range where marginal revenue is negative. c. will never produce in the output range where demand is inelastic
d. will be characterized by both (b) and (c).
When firms differentiate their products, they
a. always create real differences among products b. usually strain the sales staff of the firm c. frequently create artificial or superficial differences among products, thus raising their production costs d. always increase their profits
Social insurance taxes are paid on wages and investment income.
Answer the following statement true (T) or false (F)
With free entry
A) economic profits are possible over the long run. B) economic profits are possible but only over limited amounts of time. C) economic profits are not possible. D) the cost of capital will not be covered.