José Conseco, then a major league baseball star who had just signed a very large contract, said, "I don't think it's what I'm worth. It's what the market holds, what the organizations are willing to pay a player." He was really talking about
A. the substitution effect.
B. the income effect.
C. the primary labor market.
D. the secondary labor market.
E. economic rent.
E. economic rent.
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A swap is
A) another name for a put option. B) another name for a call option. C) an agreement between two or more persons to exchange sets of cash flows over some future period. D) the name for the replacement of a futures contract by an options contract.
Macroeconomics is concerned primarily with
A) positive economics. B) production and prices in particular markets. C) aggregate economic variables. D) normative issues.
If the Canadian government raises it budget deficit, then Canada's net capital outflows will
a. increase, so its exchange rate will rise. b. increase, so its exchange rate will fall. c. decrease, so its exchange rate will rise. d. decrease, so its exchange rate will fall.
The Board of Governors of the Federal Reserve System can increase commercial bank reserves by:
a. Increasing the reserve ratio b. Decreasing the prime interest rate c. Increasing the discount rate d. Buying government securities in the open market