If the interest rate on a security consists only of the riskless rate, then
A) there is no uncertainty.
B) velocity is constant.
C) the money supply is fixed.
D) the price level is fixed.
A
You might also like to view...
As contrasted to the mainstream view, Keynesian economists believe that ________ than mainstream economists believe
A) the multiplier effect is larger B) the burden of government debt on future generations is larger C) fiscal stimulus is weaker D) potential GDP is smaller E) the real GDP growth rate is higher
From 2012 until 2087, the CBO projects that, as a percentage of GDP, government revenues are expected to ________, government expenditure is expected to ________, and the budget deficit is expected to ________
A) increase; decrease; decrease B) decrease; increase; increase C) increase; increase; increase D) increase; increase; decrease
The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
Which of the following would the Fed increase in order increase the supply of money?
a. open market purchases of government bonds b. reserve requirements c. discount rate d. all of the above