Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
FALSE
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If the Federal Reserve sells a $2,000 bond to a bond dealer who pays with a check written on an account at Second National Bank, what changes will occur on the bank's balance sheet after the check clears?
a. Reserves and total assets will increase by $2,000 . demand deposits and total liabilities will decrease by $2,000. b. Reserves, demand deposits, total assets, and total liabilities will all increase by $2,000. c. Reserves and total assets will decrease by $2,000 . demand deposits and total liabilities will increase by $2,000. d. Reserves, demand deposits, total assets, and total liabilities will all decrease by $2,000. e. Reserves will decrease by $2,000 . demand deposits, total assets, and total liabilities will all increase by $2,000.
Which of the following CANNOT be true at any output along a perfectly competitive firm's short-run supply curve?
A. Marginal cost is greater than average total cost. B. Marginal cost is greater than average variable cost. C. Average variable cost is greater than marginal cost. D. Average total cost is greater than marginal cost.
The value of the marginal propensity to import for an open economy will realistically fall between zero and one.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. remains constant. B. initially increases, then decreases. C. decreases. D. increases