Wealth creating transactions are less likely to occur
a. Without private property rights
b. Without contract enforcement
c. Both a and b
d. None of the above
d
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"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because
A) checking accounts are primarily used for savings in the current year. B) the interest rate on checking accounts is lower than on other accounts. C) the demand for real balances is negatively related to interest rates. D) money is money.
The type of financial market where government and corporations can borrow money directly from savers is called:
a. a stock market b. a loanable funds market. c. a financial market. d. a bond market.
If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals, then how many dollars does it take to buy a meal in Rio?
a. 40 and your purchase will increase Brazil's net exports. b. 10 and your purchase will increase Brazil's net exports. c. 40 and your purchase will decrease Brazil's net exports. d. 10 and your purchase will decrease Brazil's net exports.
An increase in expected inflation for any given nominal interest rate will cause the:
A. bond supply curve to shift to the left. B. price of bonds to increase. C. bond demand curve to shift to the right. D. price of bonds to decrease.