In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the prime rate
a. True
b. False
Indicate whether the statement is true or false
False
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Abandonment of continual active discretionary counter-cyclical policies is advocated by
A) Keynesians. B) Monetarists. C) both Keynesians and Monetarists. D) neither Keynesians nor Monetarists.
Empirical evidence suggests that usury laws
A) help poor consumers by lowering the interest rate they pay. B) hurt poor consumers by limiting their ability to borrow. C) keep interest rates low. D) limit the amount borrowed by wealthier consumers.
Which of the following is true?
a. A nation cannot have a comparative advantage in the production of every good. b. A nation cannot have an absolute advantage in the production of every good. c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. e. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.
An increase in the capital stock has the same effect on the production function as an increase in
A. labor. B. output. C. GDP. D. technology.