A main argument for investing in US securities is the:
A. low rate of interest
B. high rate of interest.
C. low risk of owning them.
D. varied time frame of payment for different types of securities.
Answer: C
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If national saving (S) is $100,000, net taxes (T) equal $100,000 and government expenditure (G) is $25,000, how much are households and businesses saving?
A) $25,000 B) $225,000 C) -$25,000 D) none of the above
The general approaches to global poverty reduction include all of the following except
A. Within-nation redistribution of income. B. Government growth. C. Economic growth. D. Across-nation redistribution of income.
Silver Mountain Bank makes a loan of $35,000 to Klaus, who pays his contractor, Yasmin. Yasmin deposits the $35,000 into her account at Clearlake Bank. Clearlake then uses all the resulting excess reserves to make a loan to Miguel, who deposits it into his own bank account. Assuming the required reserve ratio for all the banks is 15 percent, how much money has been created as a result of these transactions?
a. $64,750 b. $29,750 c. $35,000 d. $5,250
Assume a society can produce either beer or wine. If the marginal rate of transformation of gallons of beer into gallons of wine is 0.5, then the opportunity cost of beer is
A. the 2 gallons of wine that must be forgone. B. the 0.5 gallons of beer that must be forgone. C. the 2 gallons of beer that must be forgone. D. the additional 0.5 gallons of beer that can be produced.