Inflation is an increase in the overall price level in the economy
a. True
b. False
Indicate whether the statement is true or false
True
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What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.
The relationship between borrowed reserves (BR), the nonborrowed monetary base (MBn), and the monetary base (MB) is
A) MB = MBn - BR. B) BR = MBn - MB. C) BR = MB - MBn. D) MB = BR - MBn.
The supply of loanable funds curve is upward-sloping because a rise in the interest rate
a. decreases the opportunity cost of firms' investment spending b. stimulates the economy c. decreases the opportunity cost to households of consuming d. increases the opportunity cost to households of consuming e. increases the government's desire to run a budget deficit
Which of the following would be the best example of regulatory capture?
A. Starbucks buys up all the available supplies of coffee beans. B. Nike executives influence the rules for track and field events. C. Federal law makers write and pass legislation that protects domestic companies from foreign competition. D. Executives from the Ford, General Motors, and Chrysler companies write the rules regulating automobile safety and fuel requirements.