The Nasdaq Composite Index:
A. is made of of mainly newer, smaller firms.
B. is made of mainly older firms and is heavily weighted by manufacturing.
C. is a price-weighted index.
D. is made up of over 5000 companies traded on the NYSE.
Answer: A
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If foreign countries simultaneously stimulate their economies rather than follow independent policies
A) world interest rates would rise and the pressure for exchange rate change would fall. B) world interest rates would rise and the pressure for exchange rate change would rise. C) world interest rates would fall and the pressure for exchange rate change would fall. D) world interest rates would fall and the pressure for exchange rate change would rise.
It is possible for the economy to be producing at a point that lies beyond its institutional production possibilities frontier (PPF), but not its physical PPF
Indicate whether the statement is true or false
Which tool results in an immediate and major impact on the money supply, but is rarely used by the Fed because it affects the money supply in such a significant way?
a. open market operations b. reserve requirement alterations c. reserve interest rate changes d. discount rate changes
Blair has vast riches and consumes thousands of dollars' worth of consumer goods each week, yet she is never satisfied. Why not?
A. Blair fails to choose rationally. B. Utility is unrelated to the level of consumption. C. People's wants are unlimited. D. The law of diminishing marginal utility shows that consuming too many material goods lowers total utility.