Suppose a goldsmith (banker) received an additional number of gold coins to put in his safe and had stopped making loans. What would be happening to his reserve ratio?
A. It would be rising.
B. It would be falling.
C. It would stay the same.
D. There is not enough information to answer this question.
A. It would be rising.
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The profits of business firms, defined as the difference between total revenue and total cost, are not zero because
A) capitalists have a near monopoly over the means of production. B) information is a scarce good. C) the government defines some opportunity costs as revenue in order to increase tax receipts. D) there would be no investment if firms did not earn positive profits.
The balance of payments consists of the
A) current account, capital account, and gold flows. B) current account, official reserve transactions account, and monetary account. C) current account, capital account, and official reserve transactions account. D) capital account, official reserve transactions account, and recent account.
Which of the following groups believes that the economy can achieve full employment without inflation through tax reductions, lower resource prices, and deregulation?
a. Classical school. b. Keynesian school. c. Neo-Keynesian school. d. Rational expectations school. e. Supply-side school.
A nation's trade is said to be balanced when the value of its exports is greater than the value of its imports
a. True b. False Indicate whether the statement is true or false