Suppose Country A has a high average wage level and a high level of output per person, while Country B has a low average wage level and a low level of output per person. Which country can benefit from trade?
a. Only Country A can benefit.
b. Only Country B can benefit.
c. Both Country A and Country B can benefit.
d. Neither Country A nor Country B can benefit.
c
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Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations
A) insure a small return on investment. B) always insure the investments. C) have a large portion of the world's unutilized or underutilized resources and hence profit potential. D) get the International Monetary Fund (IMF) to back investments through a series of loan guarantees.
Suppose the reserve ratio is RR. Then
A) required reserves = RR × deposits. B) required reserves = RR × loans. C) required reserves = RR × actual reserves. D) required reserves = RR × excess reserves.
Over the last 100 years labor force participation by elderly males has fallen from over 2/3 to 1/5
Indicate whether the statement is true or false
In executing countercyclical policy, the Fed
a. is more effective during recessions than during inflationary periods b. is more effective during inflationary periods than during recessions c. is typically ineffectual because it is difficult for the Fed to determine just where the economy is on the business cycle d. relies on the government to execute complementary fiscal policy otherwise the Fed's monetary policy is weak and typically ineffective e. relies more on moral suasion than on the three primary tools available to it