In deriving the aggregate demand curve a ________ inflation rate leads the central bank to ________ real interest rates, thereby ________ the level of equilibrium aggregate output. A) higher; raise; lowering B) lower; raise; lowering C) higher; lower; lowering D) higher; lower; raising ANSWER A
Date: September 10th, 2020
A curve that shows the price level at which firms in the economy are willing to produce different levels of goods and services and the resulting level of real income is called: A) aggregate demand. B) aggregate supply. C) potential output. D) natural rate of unemployment. ANSWER B
Date: September 10th, 2020
Using the Gordon growth model, a stock’s current price decreases when A) the dividend growth rate increases. B) the required return on equity decreases. C) the expected dividend payment increases. D) the growth rate of dividends decreases. ANSWER D
Date: September 10th, 2020
The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value. A) greater; coupon; above B) greater; coupon; below C) greater; perpetuity; above D) less; perpetuity; below ANSWER B
Date: September 10th, 2020
The ________ of a coupon bond and the yield to maturity are inversely related. A) price B) par value C) maturity date D) term ANSWER A
Date: September 10th, 2020
Collateral requirements lessen the consequences of ________ because the collateral reduces the lender’s losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default. A) adverse selection; moral hazard B) moral hazard; adverse selection C) adverse selection; diversification D) diversification; moral hazard ANSWER […]
Date: September 10th, 2020
Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false? A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs. B) Generic drugs have the same chemical content as the corresponding branded drug. C) On average, a generic drug can reduce U.S. […]
Date: September 10th, 2020
The marginal product of a variable input is calculated by dividing total product by the change in the variable input. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The BLS obtains employment information from a monthly survey of a sample of approximately 60,000 households. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The present value of a fixed-payment loan is calculated as the ________ of the present value of all cash flow payments. A) sum B) difference C) multiple D) log ANSWER A
Date: September 10th, 2020
