A decrease in the money supply aimed at decreasing aggregate output is
A) an expansionary fiscal policy.
B) a contractionary monetary policy.
C) a contractionary fiscal policy.
D) an expansionary monetary policy.
Answer: B) a contractionary monetary policy.
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If two countries produce both wheat and sugar and one country has the comparative advantage in producing wheat then the other country must have the comparative advantage producing sugar
a. True b. False Indicate whether the statement is true or false
In economics, secondary effects refer to the
a. best alternative that must be forgone as the result of a choice. b. unintended consequences of a change that are not immediately identifiable but are felt only with time. c. immediate and visible intended consequences of a change. d. impact of the scarcity of resources on the scarcity of the goods that are produced with those resources.
For which rate of inflation given below will the real interest rate be higher than the nominal interest rate?
a. –0.5% b. 0.2% c. 0.5% d. 1.5%
An Edge Act Corporation is:
A. a company created by a non-bank corporation used to purchase and operate banks. B. a company created so a U.S. bank can operate in more than one state. C. a subsidiary of a bank created to provide insurance and securities services. D. a subsidiary of a domestic bank that is established specifically to engage in international banking transactions.