Bonnie can produce either 10 hats or 20 scarves in a month. Phil can produce either 10 hats or 5 scarves in a month. Therefore:
A) Phil has a comparative advantage in hats, Bonnie in scarves.
B) Bonnie has a comparative advantage in hats, Phil in scarves.
C) Phil has a comparative advantage in both hats and scarves.
D) Bonnie has a comparative advantage in both hats and scarves.
E) Neither of them has a comparative advantage in hats.
A
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A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The law of demand ensures that a demand curve has a positive slope.
Answer the following statement true (T) or false (F)
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If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could
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