Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, a decrease in the required reserve ratio to 5% causes the M1 money multiplier to ________, everything else held constant

If inflation in Mexico is lower than it is in the United States,

A) the purchasing power of the dollar in buying American goods will rise relative to the peso. B) the value of the peso will rise in the long run. C) the value of the dollar will rise in the long run. D) the purchasing power of the peso in buying Mexican goods will fall relative to the dollar.

Economists would say tariffs

A. protect domestic producers of exported goods. B. limit voluntary exchanges. C. protect foreign producers of goods. D. protect domestic consumers of goods.