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
The collapse of the subprime mortgage market A) did not affect the corporate bond market. B) increased the perceived riskiness of Treasury securities. C) reduced the Baa-Aaa spread. D) increased the Baa-Aaa spread. ANSWER D
Date: September 10th, 2020
When the value of loans begins to drop, the net worth of financial institutions falls causing them to cut back on lending in a process called A) deleveraging. B) releveraging. C) capitulation. D) deflation. ANSWER A
Date: September 10th, 2020
When a budget deficit occurs in the United States, the U.S. Treasury finances this deficit by A) borrowing. B) imposing a moratorium of new government spending. C) increasing the tax rate. D) printing more dollars. ANSWER A
Date: September 10th, 2020
Budget deficits are important because deficits A) cause bank failures. B) always cause interest rates to fall. C) can result in higher rates of monetary growth. D) always cause prices to fall. ANSWER C
Date: September 10th, 2020
