The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.
A. business
B. government
C. household
D. capital market
Goverment Spending
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Which of the following holds true if a country is said to have a comparative advantage in the production of wheat?
a. The country can produce more wheat than any other nation. b. The opportunity cost of producing wheat is the lowest in the country. c. The price of wheat is the lowest in that country. d. Domestic wheat is of the best quality in the world. e. The country can produce only wheat.
An increase in the interest rate reduces the opportunity cost of holding money
a. True b. False
The adoption of modern technologies and business methods have the possibility to improve economic performance in a nation with low per capita income and low growth, but only if
a. its natural resources are sufficient. b. its workers become educated rapidly enough. c. it improves its institutions, making them sound enough to attract capital and entrepreneurial activity. d. its government has enough skilled planners to properly deploy new capital.
The foreign exchange market
A) is a government-run market where foreign currencies are traded. B) is a bank-owned market through which people buy and sell currencies. C) refers to the entire array of institutions through which people buy and sell currencies. D) an open market run by the Federal Reserve through which banks buy and sell currencies.