A dollar of new excess reserves supplied to the banking system enables the system to create
What will be an ideal response?
more than a dollar of new money.
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Frank spends Saturday afternoon at the Dodge dealership looking at new trucks. The model that he is interested in has a sticker price of $29,000. The fact that the price is quoted in dollars is an example of money used as a
A) medium of exchange. B) unit of account C) store of value. D) All of the above answers are correct.
Refer to Figure 17-2. Suppose the economy is at point B in the figure above. Which of the following is true?
A) The economy is producing at potential GDP. B) The current unemployment rate is 5%. C) Expected inflation and actual inflation are the same. D) The expected rate of inflation is 3%. E) The natural rate of unemployment is 3.8%.
The above figure shows a graph of the market for pizzas in a large town. At a price of $7, there will be
A) excess demand. B) excess supply. C) equilibrium. D) zero demand.
In order to achieve a high economic freedom rating, a country must:
a. provide secure protection of privately owned property and evenhanded enforcement of contracts. b. refrain from creating barriers that limit domestic and international trade. c. rely more fully on markets rather than governments to allocate goods and resources. d. do all of these.