Which type of graph is used to identify trends?
A) time-series
B) scatter diagram
C) cross-section
D) None of the above answers is correct.
A
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Investment and saving decisions are assumed by economists to depend on the ________ interest rate
A) expected nominal B) nominal C) expected real D) real
By providing and communicating information, the financial system
A) reduces the difference between the return on three-month U.S. Treasury bills and the return on thirty-year U.S. Treasury bonds. B) relieves individual savers from the necessity of searching out individual borrowers. C) eliminates the risk in investing in the stock market. D) guarantees investors a reasonable return on their money.
Monopolistically competitive firms use product differentiation to increase the price elasticity of demand
a. True b. False
The ECB has the following mandates, EXCEPT:
A) use interest rates to implement the policy of price stability. B) use monetary policy to fulfill objectives of the European Union community. C) not be under the jurisdiction of any other European Union institution. D) finance deficits of member countries when needed.