Which of the following pairs of goods would most likely exhibit a cross price elasticity of -1.8?
a. orange juice and grapefruit juice
b. coffee and tea
c. a bagel and cream cheese
d. a van and a sport utility vehicle
c
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The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
An unanticipated shift to a more expansionary monetary policy by the Fed will
a. increase real interest rates and, thereby, reduce investment, current consumption, and aggregate demand. b. reduce real interest rates, leading to an appreciation of the dollar and an expansion in net exports and aggregate demand. c. increase real interest rates, leading to higher asset prices that will stimulate aggregate demand. d. reduce real interest rates and, thereby, stimulate investment, current consumption, and aggregate demand.
The repurchase agreement market dried up during the Great Recession because:
a. Counterparty risk increased, which caused normal lending channels to fail and lines of business to shrink. b.The collateral backing these agreements fell in value, causing large massive calls for additional collateral. c. Many participants were uncertain about the value of the securities backing these agreements. d. All of the above.
Exhibit 12-1 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 12-1 shows the percentage of income received by each population quintile. In Country I we can conclude that the:
A. richest 20 percent of the population received 25 percent of the economy's income. B. richest 20 percent of the population received 40 percent of the economy's income. C. richest 20 percent of the population received 80 percent of the economy's income. D. least-wealthy 20 percent of the population received 40 percent of the economy's income.