An inward shift of the production possibilities curve could be caused by all of the following except
A. a war that destroys the nation's bridges, harbors and other infrastructure.
B. a plague that wipes out one fifth of the population.
C. a significant rise in the unemployment rate.
D. 30 years of neglect of the nation's railroad and interstate highway systems.
C. a significant rise in the unemployment rate.
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Adam Smith listed three types of motives for people holding money?transaction, precautionary, and speculative
a. True b. False Indicate whether the statement is true or false
The long-term financing dimension of financial management deals with the selection, issuance, and management of long-term debt and equity.
a. true b. false
Then in terms of production,
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof. a) Mexico has an absolute advantage in producing goods b) Canada should produce both goods and services, but mostly goods c) neither country should produce services d) the opportunity cost of producing goods is higher in Canada than in Mexico e) Mexico is relatively more efficient at producing services than goods