The typical concave (i.e., bowed-out) shape of the production possibilities frontier reflects the law of increasing opportunity cost
a. True
b. False
A
You might also like to view...
________ by the Fed means that the Fed ________
A) Credit easing; bought private securities from financial institutions B) Credit easing; made loans directly to home buyers C) Credit easing; tried to lower long-term interest rates D) Quantitative easing; required private banks to increase their lending to home buyers E) Quantitative easing; decreased in the required reserve ratio
In Figure 6-5, if price falls from point A to point B along the unit-elastic demand curve,
A. total expenditure remains unchanged. B. total expenditure increases. C. total expenditure decreases. D. total expenditure first increases and then declines.
How is the impact of contractionary monetary policy different in an open economy than in a closed economy?
What will be an ideal response?
During the early years of the Great Depression, the monetary base and M2:
A. moved in opposite directions; the monetary base increased but M2 decreased. B. both decreased significantly. C. both increased significantly. D. moved in opposite directions; M2 increased while the monetary base decreased.