In the short run, the price level is determined primarily by the supply of goods
Indicate whether the statement is true or false
FALSE
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The opportunity cost of a choice is defined as the value of
a. the next best alternative that must be sacrificed. b. all the alternatives that must be sacrificed. c. the chosen option minus the value of the next best alternative. d. the chosen option minus the value of all the alternatives.
The Fed conducts an open market purchase of Treasury bills of $10 million. If the required reserve ratio is 0.10, what change in the money supply can be expected using the oversimplified money multiplier?
a. $100 million b. $10 million c. 0 d. ?$10 million e. ?$100 million
The Fed can decrease the money supply by conducting open-market
a. sales or by raising the discount rate. b. sales or by lowering the discount rate. c. purchases or by raising the discount rate. d. purchases or by lowering the discount rate.
If a country's trade deficit declines, but it does not go into surplus, then:
A. it must be producing more than it is consuming. B. it must be buying more assets from foreigners. C. it must be selling fewer assets to foreigners. D. its consumption must be rising relative to its production.