According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happen except
A) the country's total production will fall.
B) future economic growth is enhanced.
C) the production possibilities frontier will be shift outward in the future.
D) fewer goods will be produced for consumption today.
A
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If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by
A. reducing government purchases by $60 billion. B. reducing government purchases by $12 billion. C. increasing taxes by $15 billion. D. increasing taxes by $20 billion.
If the Fed lowers the required reserve ratio, __________ in the banking system will remain unchanged but __________ will rise. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply
A) excess reserves; vault cash; increase B) reserves; vault cash; decrease C) reserves; excess reserves; increase D) reserves; required reserves; increase E) none of the above
A cutoff bank statement provides assurance to the auditors that all checks outstanding at year-end were included in the list of outstanding checks in the year-end bank reconciliation.
a. true b. false
International macroeconomic policy coordination would give countries the opportunity to avoid beggar-thy-neighbor policies.
Answer the following statement true (T) or false (F)