An increase in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would:
a. increase the money supply
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.
d
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Use the following graphs of production possibilities curves to answer the next question.
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at the different levels of economic efficiency shown in the graphs. It can be deduced that
A. Greece has a comparative advantage in chemicals. B. it is more costly in terms of resources to produce steel in Italy. C. Greece has the absolute advantage in both products. D. Italy has a comparative advantage in chemicals.
The nominal interest rate minus the inflation rate is the
A) depreciation rate. B) real interest rate. C) discount rate. D) forward rate.
What is the policy trilemma?
What will be an ideal response?
Which is the most likely estimate for the marginal utility of the sixth hamburger?
a. 10 b. 8 c. 6 d. 2