In an open economy, desired domestic lending
A) must equal desired domestic borrowing.
B) must equal desired domestic borrowing plus the amount of international lending.
C) is always greater than desired domestic borrowing.
D) is always less than desired domestic borrowing.
B
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The two main responsibilities of the Federal Reserve System are to ________ and to ________.
A. insure bank deposits; print currency B. enable banks to make affordable mortgages; control the exchange rate of the U.S. dollar C. apprehend counterfeiters; regulate the stock market D. conduct monetary policy; oversee financial markets
Refer to the following graph. When the price falls from $10 to $8, demand
a. is most elastic if the demand curve is D2.
b. is most elastic if the demand curve is D.
c. is most elastic if the demand curve is D1.
d. is most inelastic if the demand curve is D.
Unit root tests
A) use the standard normal distribution since they are based on the t-statistic. B) cannot use the standard normal distribution for statistical inference. As a result the ADF statistic has its own special table of critical values. C) can use the standard normal distribution only when testing that the level variable is stationary, but not the difference variable. D) can use the standard normal distribution but only if HAC standard errors were computed.
If you knew that two countries had the same level of real GDP per person, what additional piece of information would help you determine in which country people had a better standard of living?
A. The population of each country B. The average level of prices in each country C. The average number of hours worked per week in each country D. The total physical volume of output for each country