An increase in the reserve requirement
A) increases the money supply, which leads to increased interest rates and a decrease in GDP.
B) decreases the money supply, which leads to increased interest rates and a decrease in GDP.
C) decreases the money supply, which leads to decreased interest rates and a decrease in GDP.
D) increases the money supply, which leads to decreased interest rates and a decrease in GDP.
B
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Without productivity growth, what is the long run the effect of labor migration?
a. There will be an increase in production in the sector using labor (or capital) intensively. b. There will be clear gains to owners of capital versus labor. c. There will be clear gains to labor versus owners of capital. d. There will be a shift of world resources toward the highincome nations.
A private cost is a cost of production that is
A) borne by the producer of a good. B) measured in marginal terms. C) borne by someone other than the producer of a good. D) measured in total terms.