Who among the following provides a productive service?
A) Bill, a talented software developer
B) Monica, a paid Washington, D.C. intern
C) Buggs, an illicit drug smuggler
D) All of the above.
D
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Refer to Mexico and Japan. What is the cost of producing cloth in Japan?
a. 1/2 bushel of food per bolt of cloth.
b. 3/4 bushel of food per bolt of cloth.
c. 4/3 bushels of food per bolt of cloth.
d. 3 bushels of food per bolt of cloth.
Which of the following would not be included in the expenditure category called investment expenditures?
A) a purchase of shares of preferred stock B) spending on new houses C) a purchase of a copy machine by FedEx Office D) the cars held in inventory on a local Ford dealer's lot
Tenth National Bank holds $300 million in total deposits and $35 million in reserves. With a required reserve ratio of 9.5 percent, how much in excess reserves is Tenth National holding?
a.31.7 million b. 28.5 million c. 3.3 million d. 6.5 million
In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________.
A. rise; rise B. fall; rise C. fall; fall D. rise; fall