The stock market, banks, and savings and loans are three examples of institutions that economists would classify as belonging to the financial
A. capital market.
B. savings markets.
C. labor market.
D. investment market.
Answer: A
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Francis Crawford recently received a 20 percent wage increase and desires to work less. We can conclude that at his current wage his supply of labor curve
A) has a negative slope. B) is vertical. C) has a positive slope. D) is U-shaped.
The total lag for fiscal policy tends to be shorter than the total lag for monetary policy
a. True b. False Indicate whether the statement is true or false
In the simple liquidity preference model, changes to the money supply will have a smaller effect on interest rates the:
A. steeper, more elastic is the money demand curve. B. flatter, more elastic is the money demand curve. C. flatter, less elastic is the money demand curve. D. steeper, less elastic is the money demand curve.
The purpose of the IMF is to:
A. provide developing countries with short-term loans and technical assistance. B. determine monetary and fiscal policy in developing countries. C. determine exchange rates for developing countries. D. buy and sell the currencies of developing countries in order to stabilize their value.