It has been estimated that the marginal propensity to consume out of tax rebate money is around 1/3
a. True
b. False
Indicate whether the statement is true or false
True
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When a bank receives a check drawn on an account from another commercial bank, the bank gains
A) capital equal to the amount of the check. B) capital equal to the required reserve ratio times the amount of the check. C) reserves equal to the amount of the check. D) reserves equal to the required reserve ratio times the amount of the check.
If the demand curve is horizontal a rightward shift of the supply curve will lead to
A) an increase in quantity supplied. B) an increase in price. C) a decrease in quantity demanded. D) a decrease in price.
Assume that Canadian firms can produce one automobile or 1,000 calculators per day, and that U.S. firms can produce three automobiles or 6,000 calculators per day. The terms of trade should be between
a. 1,000 and 2,000 calculators per automobile, and the U.S. should produce both calculators and automobiles b. 1,000 and 6,000 calculators per automobile, and the U.S. should produce automobiles c. 1,000 and 6,000 calculators per automobile, and the U.S. should produce calculators d. 1,000 and 2,000 calculators per automobile, and the U.S. should produce automobiles e. 1,000 and 2,000 calculators per automobile, and Canada should produce automobiles
Realization of gains from trade, entrepreneurial discovery, and investment are largely dependent on
What will be an ideal response?