A swap that involves the exchange of one set of interest payments for another set of interest payments is called
A) an interest rate swap.
B) a currency swap.
C) a swaption.
D) an international swap.
A
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How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
a. Households' disposable incomes increase b. An increase in expected profit
What is fiscal policy, who makes it, and what is it designed to influence?
What will be an ideal response?
The real wage
A) is the nominal wage divided by the price level. B) automatically increases with the cost of living. C) is the price level divided by the nominal wage. D) is the nominal wage multiplied by the price level.
Economists believe that people are:
A. generally risk-seekers. B. generally risk-averse. C. always risk-averse. D. always risk-seekers.