A regime change is a change in:
A. monetary policy.
B. the entire atmosphere within which the government and the economy interact.
C. fiscal policy.
D. one aspect of government policy.
Answer: B
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Higher saving rates mean higher future growth rates because
A) the banks have more money to distribute to their shareholders. B) saving contributes to more investment, which yields a larger capital stock. C) the interest earned from savings gives you more wealth. D) saving contributes to less investment, which yields a larger capital stock.
The national debt is owed to which of the following?
a. The Federal Reserve system b. Investors who buy U.S. Treasury bills, bonds, and notes c. Federal government workers d. Taxpayers
The reason why the banking system can increase checkable deposits by a multiple of initial deposits is that:
A. reserves lost by any particular bank are gained by the Federal Reserve Bank. B. the banking system must keep reserves equal to 100 percent of its checkable deposits. C. the central bank follows policies that prevent reserves from falling below the level required by law. D. borrowers often spend most of a loan which is then deposited.
Low wages and poor working conditions in many U.S. trade partners
A) prove that the gains-from-trade arguments of the Ricardian model are false. B) may be a fact of life, but economists don't care. C) are facts emphasized by U.S. labor in its contract negotiations. D) prove that the gains-from-trade arguments of the Ricardian model are true. E) prove that international trade is exploitative.