Sophia Macroeconomics Final Milestone,

Which of the following could be the long run effect of budget deficits? Lower interest rates Increased investment Slower economic growth Stronger domestic currency CONCEPT Interest Rates 4 7/30/2020 Sophia :: Welcome Which of the following is NOT a way that the Fed prevents runs from happening? The Fed ensures that these private banks have access to currency needed for depositors who wish to withdraw cash. Private banks can choose to “hold” their reserves at regional Federal Reserve banks. If reserves run low, the Fed will loan money to the private banks. Private banks rely on the Federal Government's oversight of the Federal Reserve's monetary policies. CONCEPT U.S. Central Bank: Federal Reserve 5 Because of its climate, Brazil has the comparative advantage in coffee production, while the United States has the comparative advantage in wheat production. This would make which of the following statements about comparative advantage FALSE? If workers in Brazil produce wheat, they will have to give up a significant amount of coffee production. Brazil gives up more wheat than the United States when it produces coffee. The United States can obtain coffee at a lower opportunity cost than if it produced it itself