A trade deficit can produce inflation when a country and its trading partners are on the gold standard or a bi-metallic system
Indicate whether the statement is true or false
True
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In the year 2012, Shinzo Abe became prime minister of Japan, promising bold policies to improve Japan's economy. What was the focus of his policies and how did they affect Japan's trade position?
What will be an ideal response?
One of moneys primary roles in the economy comes from the use of money to transfer purchasing power to the future. This role of money is called
A) store of value. B) unit of account. C) medium of exchange. D) standard of deferred payment.
When the Fed purchases government securities from a commercial bank, the bank
A. loses its ability to make loans. B. automatically becomes poorer. C. loses equity in the Fed. D. receives reserves that can be loaned out.
If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:
A. technological progress has occurred. B. economies of scale are being realized. C. the firm is encountering diminishing returns. D. diseconomies of scale are being encountered.