Which of the following is not a reason for solving the model with a PPF?
A) It merges the household and firm problems into one graph.
B) It is simpler to solve the social planner problem.
C) It highlights the fact that the marginal rate of substitution should equal the marginal rate of transformation.
D) It highlights the fact that firms make no profit in equilibrium.
D
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The annual statement of the outlays, tax revenues, and surplus or deficit of the government of the United States is the federal
A) budget. B) deficit record. C) debt to the public. D) spending. E) surplus record.
________ is creating a marketable capital market instrument by bundling a portfolio of mortgage or auto loans
A) Diversification B) Arbitrage C) Computerization D) Securitization
Both open market purchases and quantitative easing are directed at increasing reserves in the banking system and increasing the money supply
Indicate whether the statement is true or false
Which of the following is not true concerning a currency bailout?
A. It can help avoid a domino effect of depreciating currencies in other economies. B. It occurs when money is lent to an economy to increase or maintain the value of its currency. C. The expectation of a bailout can encourage policies that lead to a currency crisis. D. The International Monetary Fund will bail out any nation with a devaluing currency.