The production possibilities frontier represents all desirable combinations of two goods
a. True
b. False
B
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________,
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
a. sacrifice market share abroad but build market share at home b. increase production volume to realize learning curve advantages c. sell foreign plants and equipment to lower their debt d. reduce the costs of transportation e. all of the above
If the Fed sells securities on the open market, this will
a. decrease banks’ excess reserves. b. increase banks’ excess reserves. c. leave banks’ excess reserves unchanged. d. lower the reserve requirement.