On which of these bonds is the prospect of default most likely?
a. a junk bond
b. a municipal bond
c. a U.S. government bond
d. a corporate bond issued by Proctor & Gamble Corporation
a
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A commercial bank has no excess reserves until a depositor places $5,000 in cash at the bank. The commercial bank then lends $4,000 to a borrower. As a consequence of these transactions, the size of the money supply has
A. increased by $5,000. B. increased by $4,000. C. not been affected. D. decreased by $5,000.
In the open-economy macroeconomic model, the market for loanable funds identity can be written as
a. S = I b. S = NCO c. S = I + NCO d. S + I = NCO
The popular and dominant school of economists in the 1930s who could not explain why the economy went into a depression were the:
A. Austrian School. B. Ricardians. C. Mercantilists. D. Classical School.
Recall the Application about the opportunity cost of an entrepreneur to answer the following question(s).According to this Application, which of the following is currently a popular way to earn an income?
A. renting out your home through Airbnb B. selling your kidneys C. driving your car through Uber D. cleaning other people's homes