Nations will be able to produce a larger joint output and realize mutual gains when each specializes in the production of those items for which it is a low-opportunity cost producer and trades for those things that it could produce only at a high cost. This statement best describes the
a. free rider problem.
b. infant-industry argument.
c. law of comparative advantage.
d. equation of exchange.
C
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A(n) __________ in consumer spending will __________ the demand for reserves, resulting in a __________ federal funds rate
A) increase; raise; lower B) increase; raise; higher C) decrease; raise; higher D) decrease; lower; higher
Unemployment insurance payments act as automatic stabilizers by:
a. allowing for more consumer spending during prosperity. b. making the unemployment rate worse during a recession. c. allowing for more consumer spending during a recession. d. changing the Phillips curve to a Laffer curve.
If real GDP in Korea amounted to 448.3 trillion wons in 1999 and 473.7 trillion wons in 2000 . compute the growth experienced by this country in 2000?
a. 5.4% b. 5.66% c. 2.54% d. -1.05% e. -9.4%
____ is the rate that applies when banks borrow and lend reserves to one another.
A. The repo rate B. The discount rate C. The coupon rate D. The federal fund rate