Government transfer payments are a good example of an automatic stabilizer
a. True
b. False
Indicate whether the statement is true or false
True
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If the expected future U.S. exchange rate falls, then in the foreign exchange market the current
A) supply of dollars decreases. B) demand for dollars increases. C) quantity supplied of dollars decreases. D) supply of dollars increases. E) quantity supplied of dollars increases.
According to your authors, the following is a necessary condition for a competitive market:
A) Large numbers of buyers and sellers B) Full and complete information C) Freedom of entry D) Identical products E) All of the above.
The change in demand deposits varies directly with
A) the currency ratio. B) the reserve ratio on demand deposits. C) the monetary base. D) the reserve ratio on time deposits.
If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
A) an inferior good. B) a neutral good. C) a necessity. D) a normal good.