When a central bank buys foreign assets,
A) its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected.
B) its holdings of foreign assets and the monetary base rise by the amount of the purchase.
C) its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier.
D) the monetary base falls by the amount of the purchase.
B
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When no property rights exist
A) no one has an economic incentive to care for common property, and an externality may well occur. B) there will be no production. C) externalities will be internalized by voluntary arrangements among a small group of parties. D) society will produce beyond the production possibilities frontier, but the allocation of resources is not apt to be optimal.
Which of the following would be most inelastic with regard to price?
a. a Samsung LCD television b. a Sony LCD television c. all LCD televisions d. Demand for all of the above would be equally elastic because none are necessities.
If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services
a. True b. False Indicate whether the statement is true or false
The central bank of a country controls the money supply, which equals the currency held by.
A. Banks B. The public plus they're checking and savings account balances C. The public plus their checking account balances