One common example of a price ceiling is rent control
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that for each automobile Japan produces it must forego producing 40 computers. The United States must forego producing 80 computers for each automobile it produces. Which of the following is true?
a. Japan has a comparative advantage in producing computers. b. the U.S. has a comparative advantage in producing computers. c. the U.S. has a comparative advantage in producing automobiles. d. the U.S. has an absolute advantage in producing automobiles. e. the opportunity cost of producing computers is the same for Japan and the U.S.
A decrease in the price level leads to which of the following sequences?
a. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve. b. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve. c. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve. d. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve. e. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement upward along the aggregate demand curve.
A U.S. corporation builds a restaurant in China. Its expenditures are U.S
a. foreign portfolio investment that increase U.S. net capital outflow. b. foreign portfolio investment that decrease U.S. net capital outflow. c. foreign direct investment that increase U.S. net capital outflow. d. foreign direct investment that decrease U.S. net capital outflow.
A bank's reserve ratio is 10 percent and the bank has $5,000 in deposits. Its reserves amount to
a. $50. b. $500. c. $4,500. d. $4,950.