An increase in the amount of excess reserves held by a bank helps to increase the economy's money supply
a. True
b. False
Indicate whether the statement is true or false
False
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One common definition of economics is the study of
A. how scarcity increases opportunities to meet ends. B. how markets overcome scarcity. C. one goal and three tasks. D. how to use limited means to meet unlimited wants. E. wants versus needs.
If people voluntarily bring their recyclable materials to a recycling center, these materials reduce landfill space, reduce the need for virgin material extraction, and provide an inexpensive input in many production processes. This results in
a. an increase in the externalities associated with producing goods b. mandatory recycling c. an increase in private costs of producing goods d. a narrowing of the gap between private and social costs of producing goods
The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
a. depreciating dollar, and a larger current account deficit. b. depreciating dollar, and a smaller current account deficit. c. appreciating dollar, and a larger current account deficit. d. appreciating dollar, and a smaller current account deficit.
If the price of a good increases, all else equal, consumers perceive
a. an increase in purchasing power if the good is an inferior good. b. an increase in income if the price increase occurs for a normal good. c. a decrease in purchasing power. d. a net gain in purchasing power if they decrease consumption of some goods.