The production possibilities curve shows that:
A. some of one good must be given up to get more of another good in an economy that is operating efficiently.
B. no output combination is impossible.
C. an economy that is operating efficiently can have more of one good without giving up some of another good.
D. scarcity can be eliminated.
Answer: A
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A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of $10,000 is made in A-1, then A-1
A) can immediately loan $9,000. B) is required to hold the deposit in its reserves. C) can immediately loan $100,000. D) can immediately loan a multiple of the $10,000. E) can immediately loan $10,000.
Economic growth is enhanced by
A) free international trade. B) limiting international trade so that the domestic economy can prosper. C) discouraging saving, because increased saving means less spending. D) ignoring incentive systems. E) increasing welfare payments to the poor so they can afford to buy goods.
An example of a stock would be
A) real GDP. B) savings. C) investment. D) the amount of money in circulation.
An independently floating exchange rate is adjusted periodically at a fixed pronounced rate.
a. true b. false