Answer the following statements true (T) or false (F)
1. The CPI measures price changes for only about two-thirds of all spending.
2. The GDP Implicit Price Defoliator is the broadest index of price changes.
3. The PPI is an index of the price level of aggregate output.
4. Check able deposits are counted as part of the U.S. money supply.
5. Savings deposits are not counted as part of the M1 measure of the U.S. money supply.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
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In order to spend more time with her children, a young mother decides to work less hours as her pay increases. What does her labor supply curve look like?
What will be an ideal response?
A decrease in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
The primary source of funds for finance companies is ________
A) commercial paper B) deposits C) securities D) the central bank
According to Fed Chairman Bernanke's analysis of the Depression-era financial system,
a. bank lending was often based on long-term relationships between banks and customers. b. after the banking system collapsed, it recovered quickly due to government intervention. c. bank lending at large was a severely depersonalized endeavor by 1925, which caused risky loan practices. d. Both a and b are correct.