If the Fed increased the discount rate,
a. banks would make more loans
b. the money supply would increase
c. firms would be more likely to seek out loans
d. the required reserve ratio would increase
e. banks would make fewer loans
E
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Comparative advantage is defined as
A) producing all goods at lower opportunity costs than other countries can. B) producing more output of all goods than anyone else can. C) producing one good at a lower opportunity cost than another country can. D) the ability to produce more output from given inputs than anyone else can.
Which of the following is a major macroeconomic goal?
a. Low prices b. Declining prices c. Pure competition d. Stable prices e. High prices
Which of the following is correct?
a. Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries. b. Productivity is not closely linked to government policies. c. The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress. d. Productivity may be measured by the growth rate of real GDP per person.
According to the law of demand,
a. demand curves have positive slope. b. supply curves have positive slope. c. demand curves slope downward. d. as consumer income increases, so does demand.