A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession
Indicate whether the statement is true or false
TRUE
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The necessity for choice, in economics, arises from
A. high incomes and many available goods. B. scarcity of economic means for satisfying economic wants. C. limited numbers of producers. D. All of the responses are correct.
Which of the following is the most accurate statement about a production possibilities curve? a. An economy can produce at any point inside or outside its production possibilities curve
b. An economy can produce only on its production possibilities curve. c. An economy can produce at any point on or inside its production possibilities curve, but not outside the curve. d. An economy can produce at any point inside its production possibilities curve, but not on or outside the curve.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Carol and Brad made riskier investments than
either Albert or Diana, they most likely invested in a. common stock b. fixed-yield stocks c. indexed stocks d. corporate bonds e. low-yield dividends
Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by:
A. $1 million. B. $20 million. C. $40 million. D. $2 billion.