Lower interest rates which reduce the debt-servicing burden of households, thus increasing their net worth, is best described by the
A) bank lending channel.
B) money channel.
C) financial market channel.
D) balance sheet channel.
D
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A movement to the left along a given short-run Phillips curve could be caused by
a. a reduction in the natural rate of unemployment or expansionary monetary policy. b. expansionary monetary policy, but not a reduction in the natural rate of unemployment. c. either a reduction in the natural rate of unemployment or a contractionary monetary policy. d. contractionary monetary policy, but not a reduction in the natural rate of unemployment.
Why are stock market bubbles costly for the economy?
A. They hurt consumers more than corporations. B. They lead to a misallocation of resources in both the short-term and long-term. C. They lead to a reduction in real investment in both the short-term and long-term. D. They imply that the actual stock price is equal to the fundamental value of the stock.
Ceteris paribus, if income increases and as a result, the demand for good X increases and the demand for good Y falls,
A. Goods X and Y are complementary goods. B. Good X is a normal good and good Y is an inferior good. C. Good X is an inferior good and good Y is a normal good. D. Goods X and Y are substitute goods.
Table 34-4 ? Quantity Quantity Quantity Quantity ? Price per Demanded Supplied Demanded Supplied TV in United States in United States Japan Japan (dollars) (thousands) (thousands) (thousands) (thousands) 100 100 10 100 25 200 85 20 85 50 300 70 30 70 70 400 60 40 60 80 500 50 50 50 90 600 40 60 40 100 700 30 70 30 110 800 20 80 20 120 Table 34-4 presents the demand and supply schedules for television sets in Japan and the United States. If Japan and the United States trade with each other, which country will export television sets and how many?
A. Japan will export 20,000 television sets to the United States. B. Japan will export 30,000 television sets to the United States. C. The United States will export 20,000 television sets to Japan. D. The United States will export 40,000 television sets to Japan.