The fact that indifference curves are bowed in toward the origin A) is not true. B) follows from the fact that more is preferred to less. C) follows from the property that the consumer likes diversity in his or her consumption bundle. D) follows from the property that consumption and leisure are normal goods. […]
Date: September 10th, 2020
As wages and prices become more flexible ________. A) wages becomes less responsive to unemployment deviations from the natural rate B) it becomes easier to differentiate the short-run from the long-run Phillips curve C) inflation becomes more responsive to unemployment deviations from the natural rate D) all of the above E) none of the above […]
Date: September 10th, 2020
The quantity theory of money ________. A) is the product of classical economists B) links total income to a country’s supply of money C) is derived from the equation of exchange D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
A haircut (in finance) is ________. A) the payment of a block of funds as part of a refinancing arrangement B) the percentage by which the value of collateral exceeds the value of the loan C) the issue of equities rather than debt in acquiring access to money capital D) the immediate end of lending […]
Date: September 10th, 2020
An indifference curve A) connects a set of consumption bundles among which the consumer is indifferent. B) is only useful in analyzing apathetic consumers. C) connects a set of consumers who each have the same preferences. D) is only useful in microeconomics. ANSWER A
Date: September 10th, 2020
The Federal Reserve System has a network of how many Federal Reserve Banks? A) 12 B) 36 C) 50 D) 84 ANSWER A
Date: September 10th, 2020
________ will cause a movement along the modern Phillips curve. A) An increase in oil prices B) An increase in the price of imports C) Wage agreements that include compensation for inflation D) all of the above E) none of the above ANSWER E
Date: September 10th, 2020
Hedge funds, investment banks, and other non-depository financial firms are known as ________. A) the shadow banking system B) repurchasers C) subprime lenders D) CDOs ANSWER A
Date: September 10th, 2020
Recent financial turmoil has caused many people to increase saving and to prefer assets that are perceived to be relatively safe and liquid. What are the likely effects on M1 and M2? What will be an ideal response? ANSWER Increased saving implies reduced consumption, so holding of the most liquid assets, M1, should decline. […]
Date: September 10th, 2020
Two key properties of indifference curves are that an indifference curve slopes A) upward and is bowed out from the origin. B) downward and is bowed out from the origin. C) upward and is bowed in toward the origin. D) downward and is bowed in toward the origin. ANSWER D
Date: September 10th, 2020
