Each of the following is a requirement of a gold standard except
A. a nation defines its currency in terms of gold.
B. a nation must maintain a fixed ratio between its gold stock and its money supply.
C. a nation must maintain a constant average price level.
D. there must be no barriers to the free flow of gold into and out of the country.
C. a nation must maintain a constant average price level.
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Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is
A) Brand B plus Brand C. B) twenty dollars. C) Brand A. D) Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
"If the United States enters a war in the Middle East, gasoline prices will go up." This statement is an example of
A) a positive statement. B) an argument. C) a normative statement. D) a factual statement.
With what measure does cyclical unemployment tend to move?
A. Per capita GDP growth rate B. Nominal GDP C. Inflation D. GDP deflator
An open market purchase of bonds by the Fed
a. drains reserves from the banking system and decreases the money supply b. injects reserves into the banking system and increases money demand c. injects reserves into the banking system and increases the money supply d. drains reserves from the banking system and increases the money supply e. injects reserves into the banking system and decreases the money supply