Refer to Figure 18.2. The opportunity cost of producing fishing poles in Macadamia is
A) 3/4 of a spear. B) 5/6 of a spear. C) 6/5 spears. D) 4/3 spears.
B
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An economic model includes
A) only normative statements. B) no use of marginal concepts. C) all known details in order to increase its accuracy. D) only details considered essential.
When the inflation rate is positive, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
An increase in the currency drain
A) leads to an increase in excess reserves. B) decreases the size of the money multiplier. C) results in an increase in deposits. D) results in an increase in required reserves.
The level of saving in Japan has historically been high relative to the level of domestic investment. Based on this information, we would expect that
A) Japan's private saving is greater than its public saving. B) Japan's capital inflows are positive. C) Japan's net foreign investment has been relatively low. D) Japan's net exports have been relatively high.