The positive effect of having more potential volunteers resulting in a greater likelihood of a beneficial outcome is known as the diffusion effect
Indicate whether the statement is true or false
FALSE
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Under a fixed exchange rate regime, if a country has an overvalued exchange rate, then its central bank's attempt to keep its currency from ________ will result in a ________ of international reserves
A) depreciating; gain B) depreciating; loss C) appreciating; gain D) appreciating; loss
In the circular flow diagram,
a. money flows from the firms to the households through the product market b. money flows from the households to the firms through the product market c. money flows from the households to the firms through the resource market d. money flows from the households to the firms through both the product market and the resource market e. resources flow to the households from the firms through the product market
In the absence of trade, a country's consumption possibilities are:
A. More than its domestic production possibilities. B. Equal to its domestic production possibilities. C. Less than its domestic production possibilities. D. Unlimited, since the terms of trade are not a constraint.
Ricardian equivalence predicts:
A. the consumers need to feel as though they will not have to pay in the future for current spending to make current tax cuts effective expansionary policy. B. if people perceive current tax cuts to mean higher tax payments in the future, the cuts will have little expansionary effect. C. that if governments cut taxes but not spending, people will not change their behavior. D. All of these are true.