Costs that pertain to finding a trading partner and making a trade are called
A) transaction costs.
B) transgression costs.
C) consumption costs.
D) transaction taxes.
A
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Assume that the currency—deposit ratio is 0.5. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action increased the money supply by $2 million. What is the reserve—deposit ratio?
A) 0.25 B) 0.35 C) 0.40 D) 0.50
If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____
a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out
The Patersons bought a home that was newly constructed in 2007 for $275,000 . They sold the home in 2015 for $255,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. b. The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP. c. The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. d. The 2015 sale affected neither 2007 GDP nor 2015 GDP.
The Norwegian government uses $500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?