The fact that the prices for McDonald's Big Mac sandwich are not the same around the world illustrates one reason why purchasing power does not hold: Many goods are not traded internationally

Refer to Figure 7-2. With the tariff in place, the United States produces

A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.

If the money multiplier is 5 and the Federal Reserves issues bonds in the amount of $6 million, what is the final change to the money stock?

A) - $30 million B) $30 million C) $1.2 million D) - $1.2 million