What happens when technological advance makes available a new highly productive capital good for which MP/P is greater than for the labor for which it is a substitute resource?
A. Labor will replace the new capital because labor is now cheaper
B. The new capital will replace labor because it reduces the firms' costs
C. More of both the new capital and labor will be used because firms are more productive
D. Less of both the new capital and labor will be used because the firms do not know how to use the new technology
B. The new capital will replace labor because it reduces the firms' costs
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A multinational agency that specializes in making loans to a larger number of developing nations to promote long-term development and growth is
A) the International Bank. B) the World Bank. C) the International Monetary Fund. D) the World Monetary Fund.
The current international monetary system is best described as a
A) fixed exchange rate system. B) flexible exchange rate system. C) managed flexible exchange rate system. D) dollar standard. E) gold standard.
The U.S. balance of payments for 2020 would include a record of ______.
a. all international financial transactions of the United States made during 2020 b. any changes in international financial transactions of the United States made between 2010 and 2020 c. all international financial transactions of the United States made in years prior to 2020 d. any changes in international financial transactions of Canada with Mexico during 2020
Which is not true of the Fed?
A. US central bank B. twin mandates of max employment and price stability C. OMO is its central tool D. totally centralized in DC E. responsible for monetary policy, bank regulation, and financial system stability