If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP, that variable is said to be
A) useless in predicting future movements in real GDP.
B) procyclical.
C) countercyclical.
D) acyclical.
C
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To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. reduce the current capital stock. B. allow higher rates of current consumption. C. reduce current rates of consumption spending. D. decrease the amount of future research and development spending.
A European option can only be exercised on the final day, the expiration date
Indicate whether the statement is true or false
If the price of a euro (the European currency) increases from $1.00 to $1.10, then, everything else held constant
A) a European vacation becomes less expensive. B) a European vacation becomes more expensive. C) the cost of a European vacation is not affected. D) foreign travel becomes impossible.
In investment banking the "spread" is the difference between
A) the value of a firm's assets and the value of its liabilities. B) the bid and asked prices on a bond. C) the price of new capital guaranteed to the issuing firm and the price that can be obtained in the market. D) the price of a new stock issue and the price of an equivalent new bond issue.