With a reserve ratio of 10 percent, the maximum potential money multiplier is

The tradeoff between inflation and unemployment

a. implies that policies designed to reduce unemployment also reduce inflation. b. was eliminated by improved economic policies in the 1900s. c. is a long-run tradeoff, persisting for decades, according to most economists. d. None of the above are correct.

Which of the following is a valid counter-argument to the call for higher tariffs to save U.S. jobs?

A. U.S. firms and workers must be protected from the cheaper labor in nations where wages are low B. All nations cannot simultaneously succeed in restricting imports while maintaining exports C. Reducing tariffs will benefit all consumers and domestic producers D. The need to protect U.S. workers from the unemployment is not a concern in international economics