The riskiness of an asset's returns due to changes in interest rates is
A) exchange-rate risk.
B) price risk.
C) asset risk.
D) interest-rate risk.
D
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The long-run Phillips curve corresponds to the vertical region of the long-run aggregate supply curve
a. True b. False Indicate whether the statement is true or false
When a country runs a deficit in its current account, the amount of foreign exchange that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?
a. From domestic citizens who purchase foreign goods and services b. From domestic citizens who invest in production facilities, real estate, or financial assets in foreign countries c. From foreigners who invest in domestic production facilities, real estate, or financial assets, and from official government transactions in foreign currency d. From government who buy bonds and stocks from foreigners
In the presidential election of 2008, record numbers of people vote in national, state, and local elections. This phenomenon was even more pronounced among young voters. What are possible explanations for this?
What will be an ideal response?
Which of the following helps explain the multiplier effect?
a) Banks only hold a fraction of their deposits on reserve. b) Income is spent and re-spent in the circular flow model. c) People buy a lot of luxury items. d) Incomes tend to increase with inflation.