The claim that successful entrepreneurs in a free market have a comparative advantage in arbitrage activity means
What will be an ideal response?
they are efficient at discovering opportunities to buy goods low and sell them at higher prices.
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The deposit expansion multiplier would increase if the Fed were to
A) raise the required reserve ratio. B) lower the required reserve ratio. C) raise the discount rate. D) sell bonds.
The above table shows some of the balance of payments accounts for Urland. What is Urland's balance in the official settlements account?
A) $405 billion B) $62 billion C) $99 billion D) $37 billion
If the demand curve for a product is horizontal, then the elasticity of demand is: a. equal to zero
b. equal to one. c. greater than one, but less than infinity. d. equal to infinity.
Suppose the Fed reduces the reserve ratio from 0.25 to 0.20 and the current level of demand deposits is $10,000 . By how much would excess reserves change?
a. Excess reserves would increase by $2,500. b. Excess reserves would increase by $2,000. c. Excess reserves would decrease by $500. d. Excess reserves would increase by $500. e. Excess reserves would increase by $4,500.