Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100 . Finally she decides on Option B. The opportunity cost of this decision is
a. the value to Barb of the option she would have chosen had Option B not been available.
b. the value to Barb of Options A, C and D combined.
c. the average of the values to Barb of Options A, C, and D.
d. $100.
a
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Under a fixed exchange rate system, a balance of payments surplus may:
A) decrease the country's money supply if there is a non-sterilized central bank intervention. B) decrease the country's money supply if there is a sterilized central bank intervention. C) increase the country's money supply if there is a non-sterilized central bank intervention. D) increase the country's money supply if there is a sterilized central bank intervention.
Figure 17-1
Which of the following is true about the economy depicted in Figure 17-1?
a.
It is experiencing supply-side inflation.
b.
Policy makers have chosen to fight inflation rather than unemployment.
c.
The increase in aggregate demand has increased prices but not real GDP.
d.
The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.