If the cyclical rate of employment equals 1 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:
A. 9 percent.
B. 7 percent.
C. 12.5 percent.
D. ?7 percent.
Answer: B
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Because of assortative mating, wealth becomes ________ and the distribution of wealth becomes more ________
A) more concentrated in a small number of families; equal B) more concentrated in a small number of families; unequal C) spread out among more families; equal D) spread out among more families; unequal
At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________
A) were not; could borrow abroad B) were not; could not borrow abroad C) were; could borrow abroad D) were; could not borrow abroad
Answer the following statements true (T) or false (F)
1. There is a correlation between the level of economic development of a nation and the status of its balance of trade. 2. The balance of payments is more like an income statement than a balance sheet. 3. If a U.S. farmer ships grain to Italy, this constitutes a debit transaction in Italy’s balance of payments. 4. Overseas investments by U.S. citizens are recorded as credit items in the financial account of the U.S. balance of payments. 5. Since unilateral transfers do not involve trading of goods or services, they are not included in the current account.
If the reserve ratio is 10 percent, the money multiplier is
a. 100. b. 10. c. 9/10. d. 1/10.