If the money multiplier is 3.0, a $1,000 increase in the monetary base
A) increases quantity of money by $3,000.
B) decreases the quantity of money by 3 percent.
C) increases the monetary base by $300.
D) increases the money multiplier by 3 percent.
E) decreases quantity of money by $3,000.
A
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Retired persons travel by bus and automobile more frequently than do business executives, who more commonly use air travel. An economic explanation for this would be that
a. business executives have more time to travel. b. it is more important for retired persons to save time. c. business executives value their time more highly. d. retired persons have more money than do business executives.
Assume that a country imposes a tariff in order to gain a price advantage on an item. What is the typical response from the exporting country?
A. It accepts the situation and does nothing about it. B. It seeks greater efficiency in order to offset the tariff. C. It refuses to sell to the country that imposes the tariff. D. It retaliates by imposing tariffs or quotas on items from the other country.