Assume that the reserve—deposit ratio is 0.2. The Federal Reserve carries out open-market operations, purchasing $1,000,000 worth of bonds from banks. This action increased the money supply by $2,600,000. What is the currency—deposit ratio?

A price ceiling on maize will likely

a. increase the amount of maize demanded b. reduce the amount of wheat supplied c. cause maize to be smuggled outside the country d. reduce the income of maize farmers e. all of the above

Labor productivity is measured by dividing Gross Domestic Product (GDP) by population

Indicate whether the statement is true or false