Banks have historically used the discount window:
A. sparingly, until the financial crisis of 2008.
B. often, until the financial crisis of 2008.
C. sparingly during recessions, and often during booms.
D. often during recessions, and sparingly during booms.
A. sparingly, until the financial crisis of 2008.
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Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point B. A decrease in government purchases would most likely
A. move the economy downward from point B along AD2. B. move the economy from point B toward point A. C. move the economy upward from point B along AD2. D. move the economy from point B toward point C.
Consider two economies: Barylia and Lithasia. The GDP per capita in Lithasia is $6,000 while the GDP per capita in Barylia is $12,000. Both countries grow exponentially at an annual rate of 10%
How will their GDPs vary over the next year? Is there any limitation of comparing the absolute levels of GDP per capita of both countries over the next years? If yes, what is a plausible solution?
In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Which of the following are the Nash equilibrium payoffs (each period) if the game is repeated 10 times?
A. (10, 10) B. (0, 0) C. (-5, 5) D. (5, -5)
The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the
A. purchasing power parity theory. B. price feedback theory. C. J-curve theory. D. trade feedback theory.