________ is the relative ease and speed with which an asset can be converted into a medium of exchange. A) Efficiency B) Liquidity C) Deflation D) Specialization ANSWER B
Date: September 10th, 2020
What happens to economic growth and unemployment during a business cycle recession? What is the relationship between the money growth rate and a business cycle recession? What will be an ideal response? ANSWER During a recession, output declines and unemployment increases. Prior to almost every recession in the U.S. the money growth rate has […]
Date: September 10th, 2020
When asset prices rise above their fundamental economic values, a(n) ________ occurs. A) asset-price bubble B) liability war C) decline in lending D) decrease in moral hazard ANSWER A
Date: September 10th, 2020
Which of the following statements is FALSE? A) Checkable deposits are usually the lowest cost source of bank funds. B) Checkable deposits are the primary source of bank funds. C) Checkable deposits are payable on demand. D) Checkable deposits include NOW accounts. ANSWER B
Date: September 10th, 2020
American companies can borrow funds A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government. ANSWER C
Date: September 10th, 2020
The monetary base consists of: A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits. ANSWER A
Date: September 10th, 2020
When a perfectly competitive firm is in long-run equilibrium: A) its total revenues equal the sum of its total explicit and implicit costs costs. B) the firm is operating at the minimum of its LRAC curve. C) the firm is earning zero economic profit. D) All of the above. ANSWER D
Date: September 10th, 2020
The goal of “personalized pricing” is to determine how much each individual customer is willing to pay for a product. As such, it is an application of first-degree price discrimination. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The overall predictive power of the estimated regression equation is measured by the F-statistic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Net exports are positively related to income in the rest of the world. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
