An open market ________ by the Fed decreases interest rates and ________ investment.
A. purchase; increases
B. purchase; decreases
C. sale; increases
D. sale; decreases
Answer: A
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Which of the following was the fastest-growing financial intermediary of the 1970s?
A) commercial banks B) credit unions C) finance companies D) money market mutual funds
The income to someone such as Lebron James is
a. mostly pure rent. b. composed of a payment necessary to induce him into employment plus economic rent. c. a return to a factor in fixed supply; there is only one of him. d. All of the above are correct.
Demand curves are downward sloping, reflecting the fact that people will buy
a. less as the price decreases b. more as the price increases c. the same quantity regardless of price d. more as the price decreases e. less as incomes decrease
The present value of $1,000 to be received one year from now
A. is always $1,100. B. is always $1,000. C. is always $900. D. cannot be determined without knowing the interest rate.