If there is no one who is interested in borrowing from a bank:
A. the bank's excess reserves will be zero.
B. there will be no process of money creation.
C. the required reserve ratio must be equal to zero.
D. the required reserve ratio must be equal to 100 percent.
Answer: B
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The Laffer curve expresses a relationship between:
a. tax rates and tax revenues. b. inflation and unemployment. c. interest rates and saving. d. money supply and the price level.
Which of the following will cause the net export function to shift?
a. A change in real GDP b. An increase in government spending c. An increase in investment spending d. A change in the exchange rate e. A change in the domestic interest rate
The economic theory of discrimination suggests that the practice of apartheid in South Africa should have
a. worsened the economic condition of only the blacks. b. worsened the economic condition of only the whites. c. worsened the economic condition of whites as well as others. d. improved the economic condition of the whites.
A $1,000 face value bond, with one year to maturity that sells for $950 and has a $40 annual coupon has a:
A. coupon rate of 4.00% and a current yield that is below this. B. current yield and yield to maturity of 4.00%. C. current yield of 4.21%. D. yield to maturity that equals the current yield.