During a period of contractionary monetary policy
A) the price level is increased, which leads to an increase in the money supply.
B) the price level is decreased, which leads to a decrease in the money supply.
C) the rate of growth of the money supply is increased, leading to an increase in the price level.
D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.
D
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The dominance of banks in Germany comes at the expense of __________ markets there
A) securities B) government bond C) consumer borrowing D) foreign exchange
Denmark has a comparative advantage in cheese production, and Holland has a comparative advantage in beer production
The two countries initially trade cheese and beer based on their comparative advantages, but the government of Denmark later closes the border to trade with Holland. What is the likely impact of this trade restriction? A) Danish cheese consumers are worse off, and beer producers in Holland are better off. B) Cheese consumers in both countries are worse off. C) Beer consumers in Holland are worse off, and cheese producers in Denmark are better off. D) Beer consumers in Holland are better off, and cheese producers in Holland are better off.