Raising the required reserve ratio causes the money multiplier to increase
a. True
b. False
Indicate whether the statement is true or false
False
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Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Most chocolate companies use already processed chocolate to craft their sweets
But Rogue buys raw cocoa beans, and roasts and grinds them until they're in a liquid state and then runs the chocolate through a big squat machine with rollers. Which statement is TRUE for Rogue? A) Raw cocoa beans are a variable factor of production and the machine is a fixed factor of production. B) Both processed chocolate and raw cocoa beans are variable factors of production. C) Processed chocolate is a variable factor of production and the machine is a fixed factor of production. D) Processed chocolate and raw cocoa beans are variable factors of production and the machine is a fixed factor of production.
If the demand for gadgets increases as a result of a decrease in the price of widgets, the widgets and gadgets are:
A. elastically demanded. B. substitute goods. C. normal goods. D. complementary goods.