Money is destroyed when:
A. loans are made.
B. loans are repaid.
C. checks written on one bank are deposited in another bank.
D. the net worth of the banking system declines.
Answer: B
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In a prisoner's dilemma game, the Nash equilibrium is better for each player than is the cooperative solution
Indicate whether the statement is true or false
A tariff:
A. is a tax on imports. B. is a tax on exports. C. directly limits the total quantity of a good that can be imported. D. directly limits the total quantity of a good that can be exported.
Using Figure 3 below, suppose that the economy was at Y3. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. a natural rate of output.
For a cost-push inflation to occur, oil price increases must be accompanied by
What will be an ideal response?