Stocks of finished goods and raw materials that firms keep in reserve to facilitate production and sales are
a. inventory investment
b. personal consumption
c. capital depreciation
d. net national product
e. durable goods
A
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Which of the following statements is NOT true about Say's law?
A) Markets would be regularly hit by severe shortages and surpluses. B) People produce more goods than they want for their own use only if they seek to trade them for other goods. C) Desired expenditures will equal actual expenditures. D) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
What can the Federal Reserve do to reduce the natural rate of unemployment?
A) nothing B) follow expansionary monetary policy that will reduce inflation C) follow expansionary monetary policy that will increase inflation D) follow contractionary monetary policy that will increase inflation
A bank is legally required to hold a fraction of its ________ as ________
A) loans; required reserves B) deposits; required reserves C) loans; excess reserves D) deposits; excess reserves
Making "soft loans"—loans which may not be self-liquidating—to the very poorest of the developing countries on relatively liberal terms is the primary function of the:
A. United Nations B. International Finance Corporation C. New Global Compact D. International Development Association