If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank
A) decrease; leave unchanged
B) increase; decrease
C) increase; increase
D) decrease; decrease
E) leave unchanged; decrease
A
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If the value of the output generated by a country's factors of production within the borders of foreign countries is higher than the value of output of foreign factors of production within its borders, ________
A) the GDP of the country is higher than its GNP B) the GDP of the country equals its trade balance C) the GDP of the country equals its GNP D) the GDP of the country is lower than its GNP
As capital goods depreciate, potential output falls.
Answer the following statement true (T) or false (F)
A maximum price set by law above the market-clearing price is called a
A) price cap B) price spike C) price floor D) price ceiling
Economists assume people's tastes are identical
Indicate whether the statement is true or false