Which of these economic variables is procyclical and coincident?
A) consumer spending
B) stock prices
C) the government bond spread
D) all of the above
E) none of the above
A
You might also like to view...
The hourly wage rate is the opportunity cost of one hour of leisure because
A) the person's substitution effect exceeds his or her income effect. B) that is what a person gives up to enjoy the hour of leisure time. C) the person must work for a living. D) the person prefers leisure to work regardless of the wage.
When prices rise, consumers and businesses hold larger money balances. This reduces the supply of loanable funds, increases the interest rate, and discourages both consumption and investment. This process is called the:
A. interest-rate effect. B. real balance effect. C. investment effect. D. disinvestment effect.
For the money expansion process to produce the maximum potential multiplier effect
A. all loans from banks have to be redeposited throughout the banking system. B. the Fed has to sell government bonds to back up the loans. C. all loans of a given bank have to be deposited in that bank. D. the required reserve ratio has to be 100 percent.
Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $-10 billion; financial account = $-50 billion. B. Current account = $+50 billion; capital account = $-20 billion; financial account = $+30 billion. C. Current account = $+10 billion; capital account = $+40 billion; financial account = $+50 billion. D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-10 billion.