The money demand curve shifts to the right when
a. there is an increase in the riskiness of interest-bearing assets.
b. there is a decrease in the interest rate.
c. income decreases.
d. income increases.
e. both a and d.
E
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A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as
A) structurally unemployed. B) seasonally unemployed. C) cyclically unemployed. D) frictionally unemployed.
The basic trade-off in valuing any asset is between:
A. amount of risk and length of loan. B. amount of risk and rate of return. C. rate of return and amount of loan. D. rate of return and length of loan.
When the price of a bond equals the face value the:
A. current yield is equal to the coupon rate. B. yield to maturity is greater than the current yield. C. yield to maturity will be above the coupon rate. D. yield to maturity will be below the coupon rate.
Assuming there are no capital gains, a nation's wealth at the start of a year is equal to the wealth at the start of the previous year plus
A) income. B) nothing because wealth does not change from one year to the next. C) income minus saving during the year. D) saving during the year. E) saving minus depreciation during the year.