Which of the following describes the Volcker disinflation most accurately?
a. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose less than it would have otherwise.
b. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose more than it would have otherwise.
c. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose less than it would have otherwise.
d. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose more than it would have otherwise.
d
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For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony. B) the wage rate offered the newest employee must be paid to all workers. C) the industry will be a closed shop. D) a normal rate of return must be paid to the owner.
Which of the following is true of the Industrial Revolution? a. It led to a twofold increase in the population of all nations
b. It led to a twofold increase in the per-capita GDP of all nations. c. It led to the invention of machines, leading to a transition to new manufacturing processes. d. It resulted in a decrease in the foreign reserves of major industrialized nations.
Which of the following approaches to investing does not rely on fundamental analysis to choose the stocks in your portfolio?
a. Choosing stocks based on research and analysis you do yourself b. Relying on advice from Wall Street analysts c. Buying shares of an actively managed mutual fund d. Buying shares of an index fund that purchases all stocks in a particular stock index
In the textbook model, wealth is held in two forms: money and in bond funds. Which of the following statements are true?
I. Money and bond funds earn the same interest rates in a well functioning money market. II. Money is a more liquid asset compared to bond funds. III. Bond funds are interest earning assets while money generally is not. IV. The difference between the interest rates paid on money deposits and the interest return available from bonds is the cost of holding money. A) I, II, and IV B) I and IV C) II, III, and IV D) III and IV