Which of the following generates a supply of U.S. dollars?
A. The demand for U.S. exports to foreign countries.
B. The construction of a plant abroad by a U.S. corporation.
C. Chinese buyers of American aircraft.
D. Foreign tourists visiting the United States.
Answer: B
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When profits occur in a competitive market, this indicates that
a. consumers value the goods more than the resources used to produce them. b. producers value the goods more than the resources used to produce them. c. producers value the goods more than consumers value the goods. d. consumers value the goods less than the resources used to produce them.
The Fed's countercyclical policy during expansion and prosperity includes:
A. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. B. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market. C. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market. D. lowering the required reserve ratio, cutting the discount rate, and buying government bonds on the open market.
Since the Federal Reserve was created, it has:
A. averted all financial panics that could have plagued the U.S. economy. B. improved its skill at securing financial stability. C. averted a few financial panics but not most. D. proved to be much better at preventing international panics than domestic ones.
Economic growth allows a society to consume
A. a higher quality of goods. B. a wider variety of goods. C. more goods per person. D. all of the above.