Scarcity affects only those who are in need
Indicate whether the statement is true or false
FALSE
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Referring to Table 12.2, if the nominal interest rate is 9.5 percent and there is no inflation, which investments will be undertaken?
A) E and D B) E C) C, D, E D) none of the above
According to the principle of comparative advantage, a nation should specialize in economic activities
A) that incur lower opportunity costs. B) that incur higher opportunity costs. C) for which it has an absolute advantage. D) for which it has no absolute advantage.
When the Fed purchases government securities from a commercial bank, the bank: a. automatically becomes poorer
b. loses equity in the Fed. c. receives reserves that can be used to make additional loans. d. loses its ability to make loans.
Interest is the reward offered to households to encourage current consumption because they value future consumption more than current consumption
Indicate whether the statement is true or false