If investors expect interest rates to fall significantly in the future, the yield curve will be inverted. This means that the yield curve has a ________ slope. A) steep upward B) slight upward C) flat D) downward ANSWER D
Date: September 10th, 2020
The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Forty or so dealers establish a “market” in these securities by standing ready to buy and sell them. A) secondary stocks B) surplus stocks C) U.S. government bonds D) common stocks ANSWER C
Date: September 10th, 2020
Conditions that likely contributed to a credit crunch during the global financial crisis include A) capital shortfalls caused in part by falling real estate prices. B) regulated hikes in bank capital requirements. C) falling interest rates that raised interest rate risk, causing banks to choose to hold more capital. D) increases in reserve requirements. […]
Date: September 10th, 2020
An increase in wealth would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
When the yield curve is flat or downward-sloping, it suggest that the economy is more likely to enter A) a recession. B) an expansion. C) a boom time. D) a period of increasing output. ANSWER A
Date: September 10th, 2020
How did McDonald’s attempt to address the cultural differences around the world in selling its product? What will be an ideal response? ANSWER For example, McDonald’s designed its restaurants in France to blend in with the local architecture as well as adding menu items appealing to the customers.
Date: September 10th, 2020
An increase in consumer confidence would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
Goal independence is the ability of ________ to set monetary policy ________. A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments ANSWER A
Date: September 10th, 2020
Give some examples of oligopolistic behavior among the major fast food companies. What will be an ideal response? ANSWER The companies typically match each other in terms of price cuts, cooking styles, and menu variety.
Date: September 10th, 2020
