When Considering Outsourcing, Most Laypeople

question 4

Multiple Choice

When considering outsourcing, most laypeople:

• A) recognize its benefits to raising foreign wages.
• B) oppose it because of the visible loss of jobs.
• C) support it because they enjoy lower consumer prices.
• D) recognize it frees resources for other jobs for which the U.S. has a comparative advantage.

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Definitions:

Excess Reserves

The reserves held by banks that are greater than the minimum amounts required by regulators, which can be lent out or invested.

Checkable Deposits

Bank account balances that can be withdrawn on demand using checks or electronic methods.

Money Supply

Refers to the total amount of money available in an economy at a particular point in time, including cash and deposits.

Fed

The central banking system in the United States, known as the Federal Reserve System, is in charge of managing the country's monetary policy.