Relative-price variability
a. rises with inflation, leading to an improved allocation of resources.
b. rises with inflation, leading to a misallocation of resources.
c. falls with inflation, leading to an improved allocation of resources.
d. falls with inflation, leading to a misallocation of resources.
b
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A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a
A) tariff system. B) quota system. C) reverse-trade system. D) union trade system.
In the United States, the reserve requirement is set by the:
a. Bank of America. b. federal government. c. U.S. Treasury. d. Federal Reserve Board. e. Department of Commerce.
Although a balanced budget may be appropriate under one monetary policy, a deficit or surplus may be appropriate under a different monetary policy
a. True b. False Indicate whether the statement is true or false
As a portion of total assets measured in billions of dollars, the least important asset on the Fed's balance sheet is:
A. loans. B. foreign exchange reserves. C. securities. D. gold.