Refer to Table 2-7. Which of the following statements is true?
A) Minnie has an absolute advantage in making umbrellas and Mickey in making hats.
B) Minnie has an absolute advantage in making both products.
C) Minnie has an absolute advantage in making hats and Mickey in making umbrellas.
D) Mickey has an absolute advantage in making both products.
A
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The neoclassical growth theory says, in part, that
A) a population explosion driven by economic growth will end economic growth. B) technological change leads to economic growth. C) the differences in nation's growth rates will persist indefinitely. D) technology does not play a role in economic growth.
When the nominal interest rate increases, the quantity of credit card services
A) increases. B) decreases. C) stays constant. D) moves in unpredictable ways.
A fiduciary monetary system is dependent on
A) acceptability and predictability of value. B) precious metals backing fiat money. C) Congressional monetary support. D) a negative inflation rate.
Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves