If commercial banks are maintaining a 4 percent reserve/deposit ratio and the Fed raises the required reserve ratio to 6 percent, then banks will ________ their loans based on current deposits, and the money supply will ________.

The central reason why there are gains from international trade is because a. trading allows otherwise unemployed people to have jobs

b. the rate of interest is not the same in all countries. c. resources are not equally distributed to all nations. d. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.

Human capital refers to

a. manufactured goods that humans use in the production of goods b. capital goods that enhance human abilities to produce goods c. knowledge and skills acquired by labor through education and training d. unskilled labor, as distinct from physical capital or skilled labor e. labor and capital used together in production