The process by which risks are shared among many different assets or people is called:
A. the credit risk.
B. the risk spread.
C. diversification.
D. the liquidity process.
C. diversification.
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The following graph is the production possibilities frontier of a nation:
The opportunity cost of the fourth unit of bread is
A. 3 drill presses. B. 4 drill presses. C. 1 drill press. D. 0 drill presses.
Which of the following happens if the long-run real interest rates fall?
A) The demand for loans fall. B) Employment increases. C) Nominal wages fall. D) Imports increase.
Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level. B) The real wage rate is equal to the equilibrium level. C) An increase in unemployment benefits. D) The real wage rate is above the equilibrium level. E) Job search decreases.
Which of the following countries received a loan from the IMF in November 2008?
A) Japan B) China C) Hungary D) Mexico