Why would it be correct to say that, if we assume that people do not change their currency holdings and that banks do not hold any excess reserves, the equation ?D = 
?RR really could be stated as ?M1 = 
?RR ?
What will be an ideal response?
M1 consists of public (non-bank) currency and checkable deposits (D). Any ?M1 =?C + ?D; Since the ?C = 0; any ?M1 = ?D
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The price of a stock is equal to the present value of expected future dividend payments from the stock
Indicate whether the statement is true or false
In the dominant firm model, the smaller fringe firms behave like:
A) competitive firms. B) Cournot firms. C) Stackelberg firms. D) Bertrand firms. E) monopolists.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate and GDP Price Index remain the same. b. The real risk-free interest rate falls, and GDP Price Index falls. c. The real risk-free interest rate falls, and GDP Price Index stays the same. d. The real risk-free interest rate rises, and GDP Price Index falls. e. The real risk-free interest rate rises, and GDP Price Index rises.
Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. lowers; raises B. raises; does not change C. raises; raises D. raises; lowers