The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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How do specialized lending channels created by central banks affect the economy during a recession?
What will be an ideal response?
Today, bank runs are
a. uncommon because of the high reserve requirement. b. uncommon because of FDIC deposit insurance. c. common because of the low reserve requirement. d. common because the FDIC is nearly bankrupt.
The process of making the best of our limited resources by doing the things we are best at and hiring other people to do the things we are not particularly good at is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
The United States dollar has NOT been officially convertible to gold by international traders since
A. 1930. B. 1971. C. 1995. D. 1944.