If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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A key difference between tariffs and quotas is that
A) consumers are hurt with quotas but not with tariffs. B) consumers are hurt with tariffs but not with quotas. C) the government receives revenue with tariffs, but the importer receives added profit with quotas. D) the government receives revenue with quotas, but the importer receives added profit with tariffs.
The money multiplier will be
a. larger if banks hold on to excess reserves but smaller if private citizens hold on to cash. b. smaller if banks hold on to excess reserves but larger if private citizens hold on to cash. c. smaller if either banks hold on to excess reserves or private citizens hold on to cash. d. larger if either banks hold on to excess reserves or private citizens hold on to cash. e. constant whether or not banks and citizens try to alter their holdings of excess reserves and cash.