It is costly to hold money because
A. in doing so, one sacrifices interest income.
B. bond prices are highly variable.
C. the rate at which money is spent may decline.
D. deflation may reduce its purchasing power.
Answer: A
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If incomes were equal in an economy can you think of any other problems that might exist as a result of this equality?
What will be an ideal response?
If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit b. the marginal social cost of air quality equals the marginal social benefit c. the marginal social cost of air quality equals the marginal private cost of air quality d. government regulators set it e. all costs are absorbed by the polluter
A debtor nation is a country that
A) during its entire history has consistently run a capital account deficit. B) borrows more from the rest of the world than it lends to it. C) lends more to the rest of the world than it borrows from it. D) during its entire history has invested more in the rest of the world than other countries have invested in it. E) during its entire history has borrowed more from the rest of the world than it has lent to it.
Current account transactions are records of the income and expenditures from exports and imports, plus international financial investments and borrowing
a. True b. False