A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
A. This may be possible if the economy has unemployed resources.
B. This is possible only in a fully employed economy.
C. This is possible if the economy is producing on its production possibilities curve.
D. None of the choices are possible.
A. This may be possible if the economy has unemployed resources.
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Banks create money by ______.
a. investing in stocks b. paying interest c. charging interest d. making loans
The typical tax-haven subsidiary owns the common stock of its related operating foreign subsidiaries.
a. true b. false
A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.
a. expenditure switching from domestic to foreign products b. expenditure switching from foreign to domestic products c. expenditure switching from rural to urban producers d. terms-of-trade deterioration
If GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?
A. $500 B. $2,000 C. $1,500 D. $1,000