The difference between actual reserves and required reserves is
A) net worth.
B) excess reserves.
C) illegal reserves.
D) desired reserves.
B
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What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector?
A) The higher value of the dollar will decrease imports and increase exports. B) The higher value of the dollar will decrease exports and increase imports. C) The lower value of the dollar will decrease imports and increase exports. D) The lower value of the dollar will decrease exports and increase imports.
Which statement most adequately describes the productivity of trade relative to the productivity of agriculture and manufacturing?
A) Trade is essential in an economy once agriculture and manufacturing have developed, even though it is not productive. B) Trade is less productive than agriculture or manufacturing. C) The word productive must be applied to agriculture or manufacturing in the same way it is applied to trade. D) Trade is productive only insofar as it distributes newly produced agricultural or manufactured goods. E) Trade is rarely productive because it almost never increases the quantity of goods in the economy.
In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. If there are 400 workers at the factory, the maximum number of vases that could be produced in one hour is
a. 400 b. 25 c. 50 d. 100 e. 80
Describe the fiscal policy remedies that a Keynesian economist might prescribe to close a recessionary gap. How might the issue of crowding out impact the effectiveness of these policies?