The political party that is in power determines the position and shape of the production possibilities frontier that constrains the choices of the economy.
Answer the following statement true (T) or false (F)
False
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In the long run, the effect of a reduction in the money supply is to
A) decrease both the price level and real Gross Domestic Product (GDP). B) decrease real Gross Domestic Product (GDP) only. C) decrease the price level and increase real Gross Domestic Product (GDP). D) decrease the price level only.
What is a zero-sum game? Can you think of any zero-sum games in real life?
What will be an ideal response?
The main problem with securitization is that
A) governments are no longer able to repackage bank assets. B) securitized banks grow too large and create oligopolies. C) There is no problem. Governments can still get an accurate picture of global financial flows by simply examining bank balance sheets. D) governments are not able to monitor bank assets or to asses a bank's risk to the soundness of the international banking system. E) the bank assets are not marketable.
An asset that can be easily disposed of without high transactions costs and with relative certainty as to its value is
A) solid. B) liquid. C) M1. D) M2.