An Increase in the Quantity of Resources

question 26

Multiple Choice

An increase in the quantity of resources

• A) shifts the PPF leftward.
• B) shifts the PPF rightward.
• C) moves the economy to a new point up along a given PPF.
• D) moves the economy to a new point down along a given PPF.

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Definitions:

Monetary Policies

Actions undertaken by a central bank, currency board, or other regulatory committees to control the supply of money and achieve economic goals such as controlling inflation or encouraging economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves a bank must hold against deposits, used as a tool for controlling the money supply.

Government Securities

Financial instruments issued by a government to borrow money, often considered low-risk investments.

Discount Rate

The rate of interest that central banks impose on the credits they extend to commercial banks or financial entities.