Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label PI* for the macroeconomic equilibrium level of the price index? 
A. Box 2
B. Box 6
C. Box 5
D. Box 1
Answer: A
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In 2010, about
A) 20 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars. B) 10 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars. C) 30 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars. D) 40 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars. E) 85 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.
Opportunity cost is the difference between the benefits and the costs of a choice
a. True b. False
Suppose you get a tax refund of $20,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if that deposit allows the bank to loan out $17,000 . then the legal reserve requirement must be
a. 0.15 percent b. 0.85 percent c. 1.5 percent d. 8.5 percent e. 15 percent
When government mandates participation in a program to solve an information asymmetry problem, it is trying to prevent:
A. building a reputation. B. illegal screening. C. moral hazard. D. adverse selection.