Demand deposits are liabilities to a bank because
a. the bank must pay interest on these accounts
b. we need some method of creating a balance
c. the bank must be willing to account for loans and bonds
d. the bank could potentially lose this money if loans are not repaid
e. the customers have the right to withdraw the funds from their checking accounts
E
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The production function shows that potential GDP increases when the
A) price level rises. B) price level falls. C) inflation rate falls. D) quantity of labor employed increases. E) the wage rate falls.
The people who support restricted international trade say that ______
A. protection saves jobs, in both the U.S. and foreign economies B. U.S. firms won't be able to compete with low-wage foreign labor if trade is free C. outsourcing sends jobs abroad, which brings diversification and makes our economy more stable D. protection is needed to enable U.S. firms to produce the things at which they have a comparative advantage
If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
a. It is horizontal in the short and long run. b. It is vertical in the short and long run. c. It is vertical in the short run and upward sloping in the long run. d. It is upward sloping in the short run and vertical in the long run.
If a quota is imposed on the import of a good that has a lower price in the domestic market than in the world market, a surplus occurs in the market for the good
a. True b. False Indicate whether the statement is true or false