Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
Refer to the data above. Which of the following is true?
A. For the West region, the cost of 5 units of clothing is 10 units of food
B. For the West region, the cost of 15 units of food is 5 units of clothing
C. For the East region, the cost of 8 units of food is 8 units of clothing
D. For the East region, the cost of 4 units of clothing is 6 units of food
B. For the West region, the cost of 15 units of food is 5 units of clothing
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If the Federal Reserve System buys government securities from commercial banks and the public, then ________.
A. the money supply will contract B. commercial bank reserves will decline C. commercial bank reserves will be unaffected D. it will be easier to obtain loans at commercial banks
According to the policy irrelevance proposition, monetary policy can affect real variables
A) in the short run only, and then only if the policy was fully anticipated. B) in both the short run and the long run. C) in the short run only, and then only if the policy was unanticipated. D) in the long run only.
The American Tire Company has been experiencing a steady loss of market over the past 40 years due to imports of lower-priced tires. Which argument would American Tire most likely present to Congress when it lobbies for trade restrictions?
a. infant industry argument b. declining industry argument c. national defense argument d. antidumping argument e. loss of domestic jobs
Subtracting the inflation rate from the nominal rate of interest tells you the:
A. nominal rate of return. B. real interest rate. C. real rate of inflation. D. price level of the economy. AACSB: Analytical Thinking