According to the principle of monetary neutrality, a decrease in the money supply will not change
a. nominal GDP.
b. the price level.
c. unemployment.
d. All of the above are correct.
c
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The federal funds market refers to the market where:
A) the Fed obtains loans of reserves from central banks of other nations. B) the federal government borrows overnight funds from the Fed. C) banks obtain loans of reserves from each other. D) there are no predetermined rates of interest on loans and the highest bidding borrower gets the loan.
If you own 10% of the shares of a corporation's stock, and the corporation is expected to earn $9 million a year in after-tax profits forever, and the interest rate is 0.05, what is the value of your shares?
a. $18 million b. $900,000 c. $9 million d. $6 million e. $180 million
In what ways can a monopolistically competitive firm differentiate their product?
a. Physical Differences b. Spatial Differentiation c. Services Provided d. All of the above are ways to differentiate a product
Suppose the government of South Island fixes the exchange rate of its currency, the Islandia, in terms of the U.S. dollar. Initially the exchange rate is set at $1 per Islandia. In a crisis, the government changes the exchange rate to $0.50 per Islandia. This is an example of a(n):
A. revaluation. B. devaluation. C. appreciation. D. depreciation.