Individuals that lend funds to a bank by opening a checking account are called A) policyholders. B) partners. C) depositors. D) debt holders. ANSWER C
Date: September 10th, 2020
One reason for the extraordinary growth of foreign financial markets is A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets. ANSWER B
Date: September 10th, 2020
Everything else held constant, a decrease in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________. A) right; increase B) right; decrease C) left; increase D) left; decrease ANSWER A
Date: September 10th, 2020
So long as marginal cost is greater than average variable cost, both average variable cost and average total cost must increase as output is increased. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The trend in recent years is that more and more governments A) have been granting greater independence to their central banks. B) have been reducing the independence of their central banks to make them more accountable for poor economic performance. C) have mandated that their central banks focus on controlling inflation. D) have required their […]
Date: September 10th, 2020
Which of the following bonds would you prefer to be buying? A) a $10,000 face-value security with a 10 percent coupon selling for $9,000 B) a $10,000 face-value security with a 7 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security […]
Date: September 10th, 2020
The Lucas critique is an attack on the usefulness of A) conventional econometric models as forecasting tools. B) conventional econometric models as indicators of the potential impacts on the economy of particular policies. C) rational expectations models of macroeconomic activity. D) the relationship between the quantity theory of money and aggregate demand. ANSWER B
Date: September 10th, 2020
The price of one currency in terms of another is called an exchange rate. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If a bank’s liabilities are more sensitive to interest rate movements than are its assets, then A) an increase in interest rates will reduce bank profits. B) a decrease in interest rates will reduce bank profits. C) interest rates changes will not impact bank profits. D) an increase in interest rates will increase bank profits. […]
Date: September 10th, 2020
Contractionary fiscal policy should be used if: A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above. ANSWER B
Date: September 10th, 2020
