Lower prices are a signal of the scarcity of a resource.
Answer the following statement true (T) or false (F)
False
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In his classic treatise on public finance, Richard Musgrave says the economic activities of the state can be broken down into _____
a. allocation, distribution, production b. allocation, distribution, stabilization c. allocation, production, protection d. production, protection, allocation
In the last few decades, the poverty rate in the US has
A. increased. B. decreased. C. changed little. D. may have increased or decreased, we do not know for certain.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
If the fractional reserve system did not exist,
A. the banking system could not create money. B. there would be no effect on the ability of the banking system to create money. C. banks would loan out its required reserves. D. banks would be highly susceptible to bank runs.