Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following is most likely to lead to an increase in the value of the dollar?
A) decline in U.S. interest rates B) increase in imports to the United States C) decrease in exports from the United States D) increase in U.S. interest rates compared to foreign interest rates
Which of the following will NOT lead to a decrease in demand for a normal good?
A) an increase in income B) an increase in the price of an input C) a decrease in the price of a complement good D) an increase in the number of consumers
Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________
A) 0.33 ton of cookies; 2 tons of cookies B) 3 tons of cookies; 0.5 ton of cookies C) 0.375 ton of coffee; 2.25 tons of cookies D) 2.67 tons of cookies; 0.44 ton of coffee
Assume that the Paris First National Bank currently has deposits of $20 million. If the current required reserve ratio is raised from 20 percent to 40 percent, then:
A. Paris First National Bank must increase its required reserves from $4 million to $8 million. B. required reserves will decrease from $16 million to $12 million. C. excess reserves will automatically increase by $20 million. D. Paris First National Bank must close out 4 million in loans.