In a barter economy the number of prices in an economy with N goods is A) [N(N – 1 )]/2. B) N(N/2 ). C) 2N. D) N(N/2 ) – 1. ANSWER A
Date: September 10th, 2020
The reserve requirement is 0.20. What is the simple deposit multiplier? A) 1 B) 5 C) 0.10 D) 100 ANSWER B
Date: September 10th, 2020
A restrictive monetary policy, all else equal, will: A) depreciate the domestic currency. B) appreciate the domestic currency. C) all of the above. D) none of the above. ANSWER B
Date: September 10th, 2020
When tax revenues are greater than government expenditures, the government has a budget A) crisis. B) deficit. C) surplus. D) revision. ANSWER C
Date: September 10th, 2020
Assume there is an increase in the price of electricity (which is the result of a decrease in the supply of electricity), and electricity and natural gas are substitutes. How would this affect the demand for natural gas, and what would happen to the equilibrium price and quantity of natural gas? ANSWER The increase […]
Date: September 10th, 2020
Which of the following bonds would have the highest default risk? A) municipal bonds B) investment-grade bonds C) U.S. Treasury bonds D) junk bonds ANSWER D
Date: September 10th, 2020
________ are asymmetric information problems that act as a barrier to efficient allocation of capital. A) Asset prices B) Credit imbalances C) Financial frictions D) Financial derivatives ANSWER C
Date: September 10th, 2020
The total willingness to pay for a given number of units of a good or service is determined by multiplying the equilibrium price of the good by the number of units purchased. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In an open economy with global capital markets and mobile capital: A) a country has control over both its domestic money supply and exchange rate. B) a country has control of either its domestic money supply or exchange, but not both. C) a country only has control over its domestic money supply. D) a country […]
Date: September 10th, 2020
Which of the following long-term bonds has the highest interest rate? A) corporate Baa bonds B) U.S. Treasury bonds C) corporate Aaa bonds D) municipal bonds ANSWER A
Date: September 10th, 2020
