If a country has a net capital inflow, it is almost certainly experiences both capital inflows and capital outflows
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 3-5. At a price of $20
A) there would be a surplus of 8 units. B) there would be a shortage of 4 units. C) there would be a surplus of 0 units. D) there would be a shortage of 8 units.
The amount of money ultimately created per dollar deposited when people hold no cash is found using the:
A. excess reserve ratio. B. required reserve ratio. C. money demand ratio. D. money multiplier.
Provide an intuitive explanation of the free-rider problem.
What will be an ideal response?
According to the permanent income hypothesis, Angie's consumption increases only when
A. she saves less when her income also falls. B. her income increases unexpectedly. C. her average lifetime income increases. D. her current income increases.