One explanation for the downward slope of the aggregate demand curve is that when the price level increase, which of the following will decrease?
A) Real value of assets
B) Price of foreign goods
C) Prices of substitute goods
D) Expectations of future prices
E) Government deficits
Answer: A) Real value of assets
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When a central bank buys foreign assets,
A) its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected. B) its holdings of foreign assets and the monetary base rise by the amount of the purchase. C) its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier. D) the monetary base falls by the amount of the purchase.
According to Douglass North (1981, 1993), to knowledgeably understand our present economy or to strategically speculate about its future, it is important to "explain the structure and performance of economies through time."
Indicate whether the statement is true or false
In a market system, the what, how and for whom questions in economics are determined by
A) those who are not in the market. B) buyers and sellers together. C) the central authority. D) no one.
If the dividend yield is fixed, this is a
a. bond b. partnership c. firm with losses d. common stock e. preferred stock