Financial markets are regulated by
A. the Stock and Exchange Commission.
B. the Stock and Bond Exchange Commission.
C. the Securities and Exchange Commission.
D. the Security and Protection Commission.
Answer: C
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What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actors decreases? The equilibrium price of a theater ticket _____ and the equilibrium quantity _____.
A. always falls ; increases B. always falls; decreases C. rises, falls, or remains the same; decreases D. does not change; does not change E. rises, falls, or remains the same; increases
Refer to Figure 10.9. Other things equal, a decrease in the nominal money supply by the Fed is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
When banks reduce the reserve ratio, the potential money multiplier
A) increases. B) decreases. C) remains unchanged. D) sometimes increases, and sometimes decreases depending on the rate of inflation.
The classical errors-in-variables (CEV) assumption is that _____.
A. the error term in a regression model is correlated with all observed explanatory variables B. the error term in a regression model is uncorrelated with all observed explanatory variables C. the measurement error is correlated with the unobserved explanatory variable D. the measurement error is uncorrelated with the unobserved explanatory variable