When the United States acquires assets abroad, it is in essence borrowing money, and foreign debts to the United States decrease.
Answer the following statement true (T) or false (F)
False
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Answer the following statements true (T) or false (F)
1. Perfect competition assumes that all products are identical and that no advertising exists. 2. Perfect competition assumes that a producer is interested in maximizing profit. 3. If all firms adhere to the conditions of perfect competition, short-run losses are avoided. 4. The aerospace industry is a good example of perfect competition.
The Fed changes the reserve requirement sparingly because:
A. very small changes cause very large overall changes to money supply due to the money multiplier. B. it would cause uncertainty for banks and slow their rate of lending. C. sudden changes of such a huge magnitude would have far-reaching, and sometimes undesirable, effects. D. All of these are true.
In which market model is there mutual interdependence?
A. Monopolistic competition. B. Pure competition. C. Oligopoly. D. Pure monopoly.
The tendency for an increase in the economic activity of one country to lead to a worldwide increase in economic activity is the
A. trade feedback effect. B. trickle-down effect. C. multiplier effect. D. spontaneous growth effect.