Which of the following can be an outcome of a budget deficit?
a. Outflow of foreign financial capital
b. Weaker exchange rate
c. Trade deficit
d. Trade surplus
c. Trade deficit
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In a mixed economy, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) all of the above
A decrease in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point outside the frontier
Indicate whether the statement is true or false
The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as
a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.
The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is not one of the ways the Fed responded?
A) The Fed made investment banks eligible for discount loans. B) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves. C) The Fed helped JP Morgan to acquire Bear Stearns, a nearly bankrupt investment bank. D) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.