Everyone, from the most to the least skilled to the most and least educated, can benefit from trade.
a. true
b. false
Ans: a. true
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Which of the following is TRUE regarding the real interest rate?
I. The real interest rate is the opportunity cost of borrowed funds. II. The real interest rate equals the nominal interest rate adjusted for inflation. A) I B) II C) both I and II D) neither I nor II
What is the relationship between economic development and the political institutions of democracy?
What will be an ideal response?
Assume that food is measured on the horizontal axis and clothing on the vertical axis. If the price of food falls relative to that of clothing, the budget line will:
A) become flatter. B) become steeper. C) shift outward. D) become steeper or flatter depending on the relationship between prices and income.
Which of the following statements is false?
a. A decrease in the reserve ratio does not change the monetary base. b. Purchases of foreign currency by the central bank increase the monetary base. c. Discount loans to banks decrease a nation's monetary base. d. All are false. e. All are true.