All of the following are nontransaction deposits EXCEPT A) savings accounts. B) small-denomination time deposits. C) checkable deposits. D) certificates of deposit. ANSWER C
Date: September 10th, 2020
Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
A lending of a country’s savings that occurs when the country has a trade deficit and its citizens purchase real and financial assets from abroad is called a capital inflow. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Price discrimination strategies that cause considerable consumer resentment or a negative reaction from competitors can reduce or eliminate the effectiveness of such strategies. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in: A) a decrease in both price and the profit-maximizing quantity of output. B) a decrease in price […]
Date: September 10th, 2020
If farmers operating in the competitive wheat industry are incurring losses, and are not kept in business with government subsidies, which of the following will result? A) Price and quantity produced will both increase in the long run. B) Resources will be reallocated out of the wheat industry into more productive uses. C) Farmers will […]
Date: September 10th, 2020
Debt deflation occurs when A) an economic downturn causes the price level to fall and a deterioration in firms’ net worth because of the increased burden of indebtedness. B) rising interest rates worsen adverse selection and moral hazard problems. C) lenders reduce their lending due to declining stock prices (equity deflation) that lowers the value […]
Date: September 10th, 2020
Everything else held constant, a weaker dollar will likely hurt A) textile exporters in South Carolina. B) wheat farmers in Montana that sell domestically. C) automobile manufacturers in Michigan that use domestically produced inputs. D) furniture importers in California. ANSWER D
Date: September 10th, 2020
Adding an independent variable to a regression model will always reduce the coefficient of determination. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If net capital flow were zero for a country, then exports would not equal imports. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
