From the banker's perspective, dollars held as required reserves in bank vaults
A) earn a low rate of interest.
B) earn no rate of interest.
C) earn a market rate of interest.
D) earn profits.
B
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Which of the goals pursued by policymakers in an open economy is desirable because it can reduce the severity of business cycles?
A) exchange-rate stability B) monetary policy independence C) free capital flows D) appreciation of the domestic currency
The demand for science fiction novels is elastic. When prices decrease from $10 to $6.50 per novel, total revenue will
a. not change. b. decrease. c. increase. d. either increase or stay the same.
Describe the shape of the typical production possibilities curve and explain why it has this shape.
What will be an ideal response?
Which of the following is a FALSE statement about education in the high-growth Asian economies?
A) An emphasis on state funding of advanced degree programs, such as engineering and computer science, increased manufacturing production significantly. B) Literacy rates rose dramatically in the high-growth Asian economies and laid a foundation for a skilled labor force. C) As the average educational level rose, workers could take on more technological, sophisticated production, pushing new investment into product lines. D) Spending was focused on the primary and secondary level, where it has the greatest social impact.