Since there are diminishing returns to the removal of further trade barriers, economists do not favor further negotiations
Indicate whether the statement is true or false
FALSE
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The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs
a. True b. False
Which of the following statements is true? a. Money market mutual funds were originally introduced by the Federal Reserve Bank of New York
b. Money market mutual funds initially constituted serious competition to banks and thrifts for the deposits of savers. c. Money market mutual funds were not originally offered by commercial banks and still are not offered by them. d. Money market mutual funds represent a pooling of cash assets from many countries, like dollars, francs, and pesos. e. Money market mutual funds are not able to offer their customers check-writing privileges.
Starting at full employment (RGDPNR), a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run. c. contractionary monetary policy can potentially result in increased real output, but only in the short run. d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.