Each point on a production possibilities frontier represents an efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)
False
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Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A's reserves immediately increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
A future payment's present value is
A) the value in today's dollars of funds to be paid or received in the future. B) the value in today's dollars of funds to be paid or received today. C) the value in a future date's dollars of funds to be paid or received today. D) the value in a future date's dollars of funds to be paid or received in the future.
Assuming that the central bank is following a money stock targeted, an exogenous rise in investment demand
a. causes income to rise but the money stock has to be increased to accommodate the expansion. b. has to be accommodated with open market purchases to expand the money stock. c. increases income, money demand, and lowers the interest rate. d. increases income and money demand and lowers the interest rate. e. none of the above.
According to the public-choice view,
a. laissez-fare is always the best economic policy. b. macroeconomic policymakers are only interested in the social good. c. policymakers often act in irrational ways or out of ignorance. d. politics often trump economic theory in policymaking. e. both c and d.