What is gained when people engage in specialization and trade?
A) Specialization and trade allow people to consume outside their individual production possibilities frontiers.
B) Specialization and trade allow people to consume at a point on their production possibilities frontiers.
C) Specialization and trade allow people to produce outside their individual production possibilities frontiers.
D) Specialization and trade allow people to consume inside their production possibilities frontiers.
E) There are no gains from specialization and trade.
A
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The time it takes for a policy to actually work is known as
A) inside lags. B) crowding out. C) fiscal policy. D) outside lags.
The bank lending channel
A) emphasizes the role of interest rates in the money supply process. B) emphasizes the importance of borrowers' net worth to the decision of lenders to grant loans. C) emphasizes the behavior of bank-dependent borrowers. D) is another name for the interest rate channel.