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
In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is A) vertical. B) horizontal. C) positively sloped. D) negatively sloped. ANSWER D
Date: September 10th, 2020
When the federal funds rate equals the interest rate paid on excess reserves A) the supply curve of reserves is vertical. B) the supply curve of reserves is horizontal. C) the demand curve for reserves is vertical. D) the demand curve for reserves is horizontal. ANSWER D
Date: September 10th, 2020
In a one-period valuation model, a decrease in the required return on investments in equity causes a(n) ________ in the ________ price of a stock. A) increase; current B) increase; expected sales C) decrease; current D) decrease; expected sales ANSWER A
Date: September 10th, 2020
In the one-period valuation model, the current stock price increases if A) the expected sales price increases. B) the expected sales price falls. C) the required return increases. D) dividends are cut. ANSWER A
Date: September 10th, 2020
