Saving is disposable personal income not spent on consumption
a. True
b. False
Indicate whether the statement is true or false
True
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In the long run, ________ dominate exchange rate movements
A) short-run inflation differentials B) long-run inflation differentials C) short-run relative price changes D) All of the above
Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane). The expansion path for this business will:
A) increase at a decreasing rate because we will substitute capital for labor as the business grow. B) follow the 45-degree line from the origin. C) not be defined. D) be a vertical line.
If no barriers blocking entry of resources to a market exist, then __________ is said to exist.
Fill in the blank(s) with the appropriate word(s).
Lowering the discount rate has the effect of:
A. Turning required into excess reserves B. Turning excess into required reserves C. Making it less expensive for commercial banks to borrow from central banks D. Forcing commercial banks to call in outstanding loans from their best customers