If the opportunity cost of producing a good domestically is less than the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports.
B. increasing production and decreasing imports.
C. increasing production and decreasing exports.
D. decreasing production and increasing imports.
Answer: B
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An increase in demand combined with no change in supply
A) raises the equilibrium price. B) lowers the equilibrium price. C) results in only a movement rightward along the demand curve. D) decreases demand because the supply curve does not shift.
If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is
A) 2.5. B) 1.67. C) 2.3. D) 0.651.
The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good
a. True b. False Indicate whether the statement is true or false
The long-run Phillips curve is a upward-sloping line at the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false