When an economy is in equilibrium,
A) planned expenditures exceed production and income.
B) there is no savings nor investment.
C) government tax revenues equal planned government expenditures.
D) production and income equal planned expenditures.
D
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The reserve ratio is 10 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has $100 million in deposits, $8 million in vault cash, and $7 million in deposits at the Fed
The Fed sells $1 million in securities to the bond dealer. As a result, of this transaction alone A) the money supply falls by $1 million and total reserves rise by $1 million. B) the money supply falls by $1 million and total reserves fall by $1 million. C) the money supply rises by $1 million, total reserves fall by $900,000. D) the money supply rises by $1 million, but reserves do not change.
Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period
Producers in which nation have an incentive to specialize in orange production? A) The U.S. B) Canada C) Both of the above have an incentive to specialize in orange production. D) Neither of the above have an incentive to specialize in orange production.