If a firm experiences economies of scope, per unit production costs fall as it produces more and more of its product

Which of the following statements about the specific factors model is TRUE?

a. When exports of a product rise, the increase in export revenue is divided equally among mobile and specific factors of production. b. When imports rise, revenues of firms that compete with imports fall. The decrease in revenue is divided equally among the mobile and specific factors of production. c. When exports of a product rise, factors specific to exports gain less and mobile factors gain more; when imports rise, factors specific to firms competing with imports gain more and mobile factors gain less. d. When exports of a product rise, factors specific to exports gain more than mobile factors; when imports rise, factors specific to import competing industries lose more than mobile factors.

Assume that the reserve—deposit ratio is 0.2. The Federal Reserve carries out open-market operations, purchasing $1,000,000 worth of bonds from banks. This action increased the money supply by $2,600,000. What is the currency—deposit ratio?

A) 0.2 B) 0.3 C) 0.4 D) 0.5