Author Question: The immediate, direct effect of someone's cashing a check at a commercial bank is A) a decrease ... (Read 83 times)

vicky · **on:** Jun 29, 2018

The immediate, direct effect of someone's cashing a check at a commercial bank is

A) a decrease in the stock of money (M1).
B) an increase in the stock of money (M1).
C) no change in the stock of money.
D) unknown until the check casher spends the currency withdrawn from the bank.

Question 2

The opportunity cost of producing one ton of wheat for Country Gamma is 4 tons of corn. The opportunity cost of producing one ton of wheat for Country Beta is 8 tons of corn. Which country has the comparative advantage in the production of wheat?

A) Gamma
B) Beta
C) Neither country has a comparative advantage.
D) Both countries have the comparative advantage.