When an economy is at full employment, increasing its military production:
a. causes a movement along the PPF.
b. causes an outward shift in the PPF.
c. means that the economy is operating outside the PPF.
d. means that the economy is operating inside the PPF.
a. cause a movement along the PPF.
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The most significant change in the economic environment that changed the demand for financial products in recent years has been
A) the aging of the baby-boomer generation. B) the dramatic increase in the volatility of interest rates. C) the dramatic increase in competition from foreign banks. D) the deregulation of financial institutions.
In the long run, an increase in the money supply
a. leaves prices and unemployment unchanged. b. raises prices and unemployment. c. raises prices and leaves unemployment unchanged. d. leaves prices unchanged and reduces unemployment.