Commercial banks do NOT
A) buy U.S. government Treasury bills.
B) accept deposits from their customers.
C) make loans to creditworthy individuals and businesses.
D) determine what assets are money.
D
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Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?
What will be an ideal response?
National characteristics that affect the cost of producing goods in a particular country include all of the following except:
A. natural resources and climate. B. endowment of factors of production. C. technology. D. proper government oversight of production.
The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier?
A) 1.00
B) 2.86
C) 3.00
D) 0.50
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The rest of the world has an absolute advantage in the production of ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. only corn. B. neither corn nor umbrellas. C. only umbrellas. D. both goods.