Any movement along an existing production possibilities curve will
a. increase the production of one good while decreasing the production of the other.
b. increase the production of both goods
c. increase efficiency.
d. increase employment.
a
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When the nominal exchange rate falls
A) the domestic currency buys more units of foreign currency and the domestic currency has depreciated. B) the domestic currency buys fewer units of foreign currency and the domestic currency has depreciated. C) the domestic currency buys more units of foreign currency and the domestic currency has appreciated. D) the domestic currency buys fewer units of foreign currency and the domestic currency has appreciated.
The interest rate that commercial banks charge each other for very short-term loans is called the:
A. federal funds rate. B. prime rate. C. bank loan rate. D. Federal Reserve discount rate.