Sue has a checking account at the First National Bank; her checking account is a(n):
A. liability to Sue until she spends the funds.
B. asset to Sue but actually a liability to the Federal Reserve.
C. asset to the bank and a liability to Sue.
D. asset to Sue and a liability to the bank.
Answer: D
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Which of the following is an equilibrium condition in the ISLM model?
A) Labor demand = labor supply B) Desired investment = desired saving C) Government spending = taxation D) Money supply = income
The law of increasing opportunity cost reflects the fact that
a. the production possibilities frontier is bowed inward b. resources are not perfectly substitutable c. resources cannot always be used efficiently d. an economy will operate at a point inside the production possibilities frontier e. an economy will operate at a point along the production possibilities frontier