The primary cause of the reduction in the nominal money supply during the early years of the Great Depression was
A) the Fed's sale of bonds.
B) the Fed's purchase of bonds.
C) a reduction in the money multiplier.
D) none of the above
C
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There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y
These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 30, PY = 80 B) PX = 40, PY = 60 C) PX = 60, PY = 120 D) PX = 80, PY = 130
Increasing taxes likely leads to an increase in activity in the underground economy
a. True b. False