High-powered money consists of
A. all deposits at the Fed.
B. bank reserves minus vault cash.
C. bank reserves plus currency held by the nonbank public.
D. deposits at the Fed plus vault cash.
Answer: C
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Private markets are most likely to produce goods that are
a. neither rival nor excludable b. rival, but not excludable c. socially desirable, regardless of whether they are rival or not d. both rival and excludable e. rival, but not profitable
Supply-side tax cuts are more likely to have the intended beneficial effect on
a. budget deficits. b. consumer spending. c. investment spending. d. net exports.
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.
For a perfectly competitive firm facing the short-run break-even price
A. it should expand production. B. it has an economic profit of zero. C. it should shut down. D. it has a negative accounting profit.