Which of the following things do banks do with the funds they acquire from savers?
A) invest in corporate stock
B) invest in corporate bonds
C) make loans to individuals
D) all of the above
C
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Suppose that savers become much more willing to purchase a certain type of municipal bond. The result will be that the bond's price will
A) fall relative to the price of U.S. Treasury securities but rise relative to the price of corporate bonds. B) rise relative to the price of U.S. Treasury securities but fall relative to the price of corporate bonds. C) rise relative to the prices of U.S. Treasury securities and corporate bonds. D) fall relative to the prices of U.S. Treasury securities and corporate bonds.
A union that pursued a policy of restricting entry over time into the union would
A) see real wages hold constant over time at whatever premium they could get initially. B) also have to negotiate to be sure that all the members were able to find jobs. C) generate rising real wages for its membership over time as long as demand for union workers increased over time. D) fail to obtain benefits for their workers in excess of what the workers would get under open markets.
Which of the following observations regarding the Gini coefficient (G) is incorrect?
a. If G is one, the Lorenz curve would overlap the line of perfect income equality. b. If G is zero, it represents perfect income equality c. If G is one, it represents perfect income inequality d. The closer G is to 1 the greater the degree of income inequality
By itself, if a U.S. firm builds a new factory overseas, U.S. net capital outflow rises
a. True b. False Indicate whether the statement is true or false