Using the equation of exchange and assuming full employment and a constant velocity of money, a decrease in the required reserve ratio would result in a
A. Lower velocity.
B. Lower price level.
C. Lower quantity of real output.
D. Higher price level.
Answer: D
Economics
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It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $140 per unit of product A and B, this exhibits signs of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
Economics
A minimum wage that is set below the equilibrium wage will:
a. cause increased unemployment. b. have no effect on employment. c. cause the overall wage to increase. d. cause the overall wage to decrease. e. create more jobs.
Economics