The time it takes to overcome the practical and procedural hurdles before the Fed can begin to fix the economy is called the
A) recognition lag.
B) implementation lag.
C) impact lag.
D) liquidity lag.
B
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Which of the following can create a deadweight loss?
i. price supports ii. price floor iii. price ceiling A) i only B) i and iii C) ii and iii D) i, ii and iii E) i and ii
The "Capital Asset Pricing Model" measures the risk premium for a capital investment by comparing the expected return on that investment with the
A) average return on other investments of similar risk. B) average return on the past several years' investments made by the firm. C) expected return on the entire stock market. D) expected return on the government bond market. E) expected return on the corporate bond market.
The total of all economic transactions between a nation and the rest of the world is referred to as the
A) balance of payments. B) balance of trade. C) balance of power. D) exchange rate.
We can tell how much physical capital has been added to the economy by:
A. taking into account both new investment and depreciation of capital. B. adding up the value of all tools, equipment, and structures that have ever been built. C. counting the number of persons of working age. D. counting the number of persons of working age who are employed.