Suppose that an individual can hold her wealth in only two forms: money and bonds. A _______________ in the bond market would then imply that there is a ________________ in the money market
A) surplus; surplus
B) shortage; shortage
C) surplus; shortage
D) shortage; surplus
E) c and d
D
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The depreciation of a currency may cause an initial worsening of the balance of payments before it improves. This is called the
A) J-curve effect. B) time value of money. C) Marshall Lerner condition. D) shock effect.
The Bureau of Labor Statistics measures unemployment by surveying:
A. a sample of about 60,000 households every month. B. every business at least once a year. C. every household at least once a year. D. a sample of about 60,000 employers every month.
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.
If we compared the total of the structurally and frictionally unemployed to the cyclically unemployed,
A. Cyclical would always be higher. B. Cyclical would usually be higher. C. Cyclical would rarely be higher. D. Cyclical would never be higher.