T - F21. The U.S. demand for British pounds represents a supply of dollars for the British pound in foreign exchange markets.

T - F22. Output combinations that lie inside the production-possibilities curve are characterized by efficient use of resources.

T - F23. The GDP of the United States includes production by foreign-owned firms that are located in the United States.

T - F24. A change in price changes the quantity demanded and is represented by a movement along the demand curve.

T - F25. A public good is a good or service for which consumption by one person makes consumption by others impossible.

T - F26. To use per capita GDP as a measure of the standard of living in different countries requires that the countries have similar production, institutions, and income distribution.

T - F27. The duration of unemployment is a measure of how long it takes workers to find a new job.

T - F28. The experiences of the early 1900s bolstered the confidence of classical economists in the stability of the economy.

T - F29. The marginal propensity to consume (MPC) is related to the marginal propensity to save (MPS) by the formula MPC = 1 - MPS.

T - F30. At the equilibrium rate of income there is no longer any cause for further changes in output, because desired spending equal's output.

T - F31. Government taxes are an example of a policy lever.

T - F32. Deficit spending occurs when government tax revenues exceed government spending.

T - F33. The willingness of consumers and businesses to continue using and accepting checks rather than cash constrains the money supply.

T - F34. The Federal Reserve banks are responsible for clearing checks between private banks, holding bank reserves, providing currency, and making loans.

T - F35. If the interest rate in the money market is above equilibrium, there is a shortage of money.

T - F36. The targets of demand-side macroeconomic policy are prices and the quantity of output.

T - F37. Growth in real GDP per capita is achieved when population grows more rapidly than output.

T - F38. The marginal propensity to import is the ratio of the change in imports to a given change in disposable income.

T - F39. Deflation is a decrease in the average level of prices, not a decrease in any specific price.