Pierre is French Canadian, and like many Canadians he is experiencing booming good economic times. His good fortune is likely to impact U.S. aggregate demand in what way?
a. Positively, because he prefers to make all his purchases in Canada from Canadian firms.
b. Negatively, because he prefers to make all his purchases in Canada from Canadian firms.
c. Negatively, since we are all members of
North American Free Trade Zone.
d. Positively, since he will be in a better position to purchase U.S.-made goods.
d
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If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
(A) No change in the money supply. (B) An increase, then a decrease, in the money supply. (C) An increase in the money supply. (D) A decrease in the money supply.
A lawyer running his own business earns $18,000 in revenue monthly. He pays $8,000 as explicit costs including staff salary and utilities. He owns the office space so no rent is paid
The lawyer could work for other legal firms and earn $10,000 per month. His business profit is ________ and his economic profit is ________. A) $10,000, $10,000 B) $28,000, $10,000 C) $10,000, $0 D) $8,000, $0