Credit Default Swap
What will be an ideal response?
Form of insurance pays if an issuer defaults on its bonds
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Assume that any given percentage of the population earns an equal percentage of real GDP. This percentage of population will be represented by:
a. a point below the line of income equality. b. a line lying below the line of income equality. c. a point on the line of income equality. d. a line lying above the line of income equality. e. a point above the line of income equality.
In addition to higher wages, early labor unions negotiated with business owners for ______.
a. shorter hours and workweeks b. increased mandatory overtime c. benefits for unmarried partners d. paid vacation time
An example of a benefits-received tax would be ______.
a. a launching permit to use a boat in a public lake b. a portion of federal income tax used for national defense c. a progressive income tax d. a sales tax
Consider a small open economy that is in equilibrium with a current account surplus. (a)Draw a diagram showing this situation.(b)Now suppose that future income increases. Show what happens in your diagram. What happens to the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance?(c)Repeat parts (a) and (b) for the case of a large open economy, showing a situation in which the home country initially has a current account surplus. Draw a diagram and describe how the rise in future income in the home country affects all four variables (the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance) in both countries.
What will be an ideal response?