Including investment and production in the two-good, two-period model with trade
A) allows the country to equalize absorption and output demand.
B) renders terms of trade endogenous.
C) allows the country to react to changes in the interest rate.
D) allows the government to run budget deficits.
C
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Most of a bank's operating income results from
A) interest on assets. B) service charges on deposit accounts. C) off-balance-sheet activities. D) fees from standby lines of credit.
If there is an increase in market demand in a perfectly competitive market, then in the short run
a. there will be no change in the demand curves faced by individual firms in the market b. the demand curves for firms will shift downward c. the demand curves for firms will become more elastic d. market supply will fall e. profits will rise
The term underemployed refers to an individual who prefers full-time employment but works only part-time
a. True b. False Indicate whether the statement is true or false
What entity or entities take the necessary steps to increase or decrease the money supply?
a. commercial banks b. the central bank c. investment firms d. pension plans