The monetary base is the sum of:
A. currency in the hands of the public M1.
B. currency in the hands of the public and M2.
C. reserves and currency in the hands of the public.
D. reserves and M2.
Answer: C
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According to Hume's price-specie-flow mechanism, a sudden increase in the money stock of Country A:
a. causes an immediate deflation in Country A. b. leads to an increase in Country A's imports relative to its exports. c. leads to an increase in Country A's exports relative to its imports. d. causes specie from the rest of the world to flow into Country A.
The United States did not join the ICC because the U.S. government
a. disagreed with the enforcement mechanisms it put in place. b. feared the ICC would be used as a political tool against it. c. believed the ICC to be an extremely ineffective organization. d. had never been formally asked to join.
When economists speak of changes in GDP measured in constant dollars, they mean that
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. If the representative firm in a monopolistic ally competitive industry has an optimal output where P< ATC, the industry will expand in the long run. 2. In the long run, typical firms that are monopolistic ally competitive earn economic profits. 3. Monopolistically competitive firms will achieve the most efficient allocation of society's resources because there are no significant barriers to entry into the industry. 4. Pure competition results in a lower price but identical output level compared to those in monopolistic competition. 5. Monopolistic competition provides the benefit of product variety but at the cost of productive inefficiency.