Monetary policy to stabilize the nation is less desirable whenever:
A) the nation is a net external debtor with liabilities denominated in foreign currency.
B) the nation is a net external creditor with assets denominated in foreign currency.
C) the central bank of the nation must also finance government deficits.
D) the government is unable to raise taxes sufficiently to lower its deficit.
Ans: A) the nation is a net external debtor with liabilities denominated in foreign currency.
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If the price of a product decreases, we would expect:
A. Demand to increase B. Quantity supplied to decrease C. Supply to decrease D. Quantity supplied to increase
According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:
A. have the highest opportunity cost. B. have the lowest opportunity cost. C. we have the most of. D. we have the least of.