The value of the U.S. dollar bill is determined by
A) the quantity of gold in Fort Knox.
B) the quantity of gold in the Federal Reserve.
C) the quantity of gold in circulation.
D) the gold futures market.
E) none of the above.
E
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In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output. B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point. C) dollar value of the resources used to produce the good. D) amount of the other good or service that must be forgone. E) None of the above answers is correct.
Mutual funds are diversified financial instruments that represent a large number of stocks, bonds, and/or other financial assets
Indicate whether the statement is true or false
The money multiplier is much lower today than it was twenty-five years ago because:
A. people are holding less currency today. B. credit cards are more widely used. C. there is less currency available today. D. the currency-to-deposit ratio is much higher today.
Refer to Figure 16.4. If the economy is initially in equilibrium at P3 and Q1, the appropriate policy to move the economy to an equilibrium at P1 and Q2 would be to
A. Increase government regulation. B. Increase the marginal tax rate. C. Increase the minimum wage rate. D. Increase the investment in human capital.