Proprietor’s income is not considered part of national income. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Provisions in loan contracts that prohibit borrowers from engaging in specified risky activities are called A) proscription bonds. B) restrictive covenants. C) due-on-sale clauses. D) liens. ANSWER B
Date: September 10th, 2020
A short-term debt instrument issued by well-known corporations is called A) commercial paper. B) corporate bonds. C) municipal bonds. D) commercial mortgages. ANSWER A
Date: September 10th, 2020
A firm’s decision to expand the size of its production facility would be considered a short-run decision so long as the expansion can be completed in less than a year. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In recent years, U.S. exports have exceeded U.S. imports. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following is not a barrier to entry that is created by government? A) Economies of scale. B) Licenses. C) Regulatory restrictions. D) Patents. ANSWER A
Date: September 10th, 2020
In one sense ________ appears surprising since it means that the bank is not ________ its portfolio of loans and thus is exposing itself to more risk. A) specialization in lending; diversifying B) specialization in lending; rationing C) credit rationing; diversifying D) screening; rationing ANSWER A
Date: September 10th, 2020
An autonomous easing of monetary policy A) causes an upward movement along the monetary policy curve. B) causes a downward movement along the monetary policy curve. C) shifts the monetary policy curve upward. D) shifts the monetary policy curve downward. ANSWER D
Date: September 10th, 2020
The “long run” is defined as a period of time long enough for the quantities of all of the inputs to production to vary. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If there is an autonomous decrease in spending (a leftward shift in the aggregate demand curve) and the Fed wishes to hold real income constant, then the Fed would: A) decrease the money supply yielding a leftward shift in the aggregate demand curve. B) increase the money supply yielding a rightward shift in the aggregate […]
Date: September 10th, 2020
