Suppose the central bank of Blugonia has the responsibility of controlling the supply of money in the economy. This responsibility of the central bank is considered a part of _____
a. budget balancing
b. decentralized banking
c. monetary policy
d. trade policy
c
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If two nations are equally armed it is highly likely that neither will initiate a conflict
a. True b. False
Suppose that the level of real GDP is $1,000,000 and the economy has 10,000 workers. Labor productivity is
a. $100 per worker b. $0.01 per worker c. $1,000,000 per worker d. $1,000 per worker e. Labor productivity cannot be computed with the information given
The government, concerned about the wealth redistribution problem caused by the inequality of debt holdings, intervenes by
a. making a special effort to sell bonds to corporations b. creating a proportional income tax system c. sometimes instructing commercial banks to divest some of their bond holdings d. prohibiting the sale of bonds to the Federal Reserve e. limiting the purchase of bonds by foreigners
If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes
a. True b. False Indicate whether the statement is true or false