Other things equal, the ________ the real interest rate, the ________ the potential pool of borrowers
A) higher; less risky
B) higher; more risky
C) lower; smaller
D) lower; less qualified
B
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In 2012, the United States had
A) a current account deficit because imports were greater than exports. B) a current account deficit and a capital and financial account deficit. C) a capital and financial account deficit because exports were greater than imports. D) a current account surplus because imports were greater than exports. E) no change in U.S. official reserves.
Employers can shift payroll taxes by substituting capital for labor
a. True b. False Indicate whether the statement is true or false
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
A) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely. B) even when market participants care only about their own self interests rather than about the overall efficiency of resource use. C) only if buyers and sellers really care, personally, about economic efficiency. D) even if business firms fail to produce goods efficiently.
The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier
A) productively efficient B) allocatively efficient C) attainable D) unattainable