What is the current limit on balances that are covered by federal deposit insurance?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
B
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The situation when the price of most goods and services are falling over time is called:
A. disinflation. B. a boom. C. deflation. D. inflation.
The nominal exchange rate is 15 crowns per florin, the domestic price level is 6 florins/bottle, and the foreign price level is 2 crowns/bushel
(a) What is the real exchange rate? (b) What is the real exchange rate in the foreign country? (c) If the domestic price level rises to 8 florins/bottle, what must the nominal exchange rate become if the real exchange rate remains unchanged?
If there is initially a federal budget deficit, and government purchases and transfer payments both rise:
a. AD increases and the budget deficit increases. b. AD increases and the budget deficit decreases. c. AD decreases and the budget deficit increases. d. AD decreases and the budget deficit decreases.
The "law" of diminishing returns is also referred to as
a. the "law" of diminishing returns to scale. b. the "law" of variable input proportions. c. diminishing average physical product. d. the "law" of decreasing cost.