Points that lie outside (or beyond) the PPF are
A) attainable.
B) unattainable.
C) efficient.
D) inefficient.
B
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High-powered money minus reserves equals
A) reserves. B) currency in circulation. C) the monetary base. D) the nonborrowed base.
The supply of Thai baht in the foreign exchange market originates with:
a. tourists who go on vacation to Thailand. b. the export of Thailand oranges and other goods. c. Thai residents who wish to purchase goods from other countries. d. the Thai royal family. e. Thai central bank intervention to stop the peseta from depreciating.
Under international trade we export those goods for which we have a relatively low
A. materials cost. B. wage cost. C. accounting cost. D. opportunity cost.
Explain the money multiplier and give two examples showing how much money could be generated from a single deposit. For each example, be sure to include the initial deposit amount, the reserve requirement ratio, the excess reserve amount, the money multiplier, and the potential total amount of money generated, rounding to the nearest tenth at each step.
What will be an ideal response?