The economic behavior of individual decision makers and the determination of price and output in specific markets are both studied in
a. microeconomics
b. macroeconomics
c. positive economics
d. normative economics
e. disequilibrium economics
A
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How do banks create liquidity?
What will be an ideal response?
The terms of trade
a. equal the ratio of opportunity costs of production in two countries b. equal the ratio of marginal production costs in two countries c. is the quantity of one good that is exchanged for one unit of another good d. are determined by absolute advantage e. equal the ratio of average production costs in two countries
The efficiency of the payments' mechanism affects
a. the speed with which money can be exchanged for other assets. b. how quickly individual loan applications will be approved. c. how slowly individuals deplete their cash balances. d. the speed with which financial institutions can process checks and other funds.
Which of the following tends to make the size of a shift in aggregate demand resulting from a tax change smaller than would otherwise be the case?
a. the multiplier effect b. the crowding-out effect c. expansionary monetary policy d. None of the above is correct.