If the production possibilities frontier for guns and butter is bowed outward from the origin, this indicates constant opportunity cost between the two goods.
Answer the following statement true (T) or false (F)
False
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In a country without foreign trade and no income taxes, if the government increases autonomous taxes by 1000 and the MPS is 0.1, then the initial or first round change in expenditures by all tax payers will be
A) a reduction equal to 1000. B) an increase equal to 1000. C) a reduction equal to 900. D) an increase equal to 900.
A "universal bank"
a. has branches in many countries. b. the same as a U.S. commercial bank. c. performs both traditional banking and merchant-banking functions. d. none of the above. e. all of the above
Those goods produced by the economic system that are used as inputs in the production of future goods and services are known as capital.
Answer the following statement true (T) or false (F)
If greater stock prices can lead to greater investment spending, should central bankers ever worry about stock prices becoming too high?
What will be an ideal response?