We would expect which of the following to occur when the central bank conducts an open market purchase of bonds?
A) a reduction in the monetary base (H)
B) a reduction in the money multiplier
C) an increase in the money multiplier
D) an increase in the money supply
D
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You are trying to decide if you should take a day off from work to go to a casino
In making your decision, you compare what you would sacrifice to go to the casino (lost wages for the day, potential losses at the casino, the amount of work you will have to make up, etc.) with the enjoyment you would receive from the day off (relaxation, potential winnings, etc.). The analysis you have just conducted is called A) cost-benefit analysis. B) comparative advantage analysis. C) stress analysis. D) sacrificial-wage analysis.
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than one. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?