Policies adopted by a country’s central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called: A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy. ANSWER A
Date: September 10th, 2020
Changes in taxes and spending by the executive and legislative branches of a country’s government that can be used to either stimulate or restrain the economy are called: A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy. ANSWER B
Date: September 10th, 2020
In its effort to maximize economic profit, a firm characterized as a price setter must determine: A) only the price it should charge. B) only the quantity it should produce. C) both the price it should charge and the quantity it should produce. D) neither the price it should charge and the quantity it should […]
Date: September 10th, 2020
McDonald’s can offset the decline in demand by influencing the different variables that affected the demand function for their products. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
A decrease in the nominal money supply would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER B
Date: September 10th, 2020
The steeply upward sloping yield curve in the figure above indicates that A) short-term interest rates are expected to rise in the future. B) short-term interest rates are expected to fall moderately in the future. C) short-term interest rates are expected to fall sharply in the future. D) short-term interest rates are expected to remain […]
Date: September 10th, 2020
What are the three monetary policy tools of the Fed? Briefly describe how each tool can be used to implement an expansionary monetary policy and a contractionary monetary policy. What will be an ideal response? ANSWER Open market operations, the discount rate, and the reserve requirement are the three policy tools available to the […]
Date: September 10th, 2020
All of the following are strategies a firm with market power can adopt to increase it profits over time except: A) mergers with, and acquisitions of, competing firms. B) erecting barriers to entry. C) setting price equal to the marginal costs of production. D) influencing the regulatory process. ANSWER C
Date: September 10th, 2020
________ work in the secondary markets matching buyers with sellers of securities. A) Dealers B) Underwriters C) Brokers D) Claimants ANSWER C
Date: September 10th, 2020
A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond. ANSWER C
Date: September 10th, 2020
