Economists agree that at least in the short run disinflation
a. leads to a period of higher unemployment. They also agree that the costs of even moderate inflation is high.
b. leads to a period of higher unemployment. They disagree about the cost of moderate inflation.
c. leads to a period of lower unemployment. They also agree that the cost of even moderate inflation is high.
d. leads to a period of lower unemployment. They disagree about the cost of moderate inflation.
b
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Two goods, X and Y, are called complements if
a. an increase in PX causes more Y to be bought. b. an increase in PX causes less Y to be bought. c. an increase in PY causes less Y to be bought. d. an increase in income causes more of both X and Y to be bought.
If the price of a normal good rises, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less
By taking the long position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $115,000. B) sell; $115,000; $100,000. C) buy; $100,000; $115,000. D) buy; $115,000; $100,000.
On a bank's balance sheet, bank capital is considered:
A) an asset B) a liability C) the difference between a firm's assets and it's shareholder's equity D) the total amount of funds banks have availability to make loans