Which of the following is the most accurate statement about nominal and real interest rates?
a. Nominal and real interest rates always move together.
b. Nominal and real interest rates never move together.
c. Nominal and real interest rates often do not move together.
d. Nominal and real interest rates always move in opposite directions.
C
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Financial disintermediation occurs when:
a. Individuals no longer trade securities in the secondary market. b. Individuals withdraw funds from financial intermediaries and invest them elsewhere. c. Businesses no longer borrow directly in the bond market. d. All of the above.
Suppose the consumption equation is represented by the following: C = 250 + .75YD, then private savings is
A) -250+0.25YD. B) -250+0.75YD. C) -1000+0.25YD. D) -1000+0.75YD.
Countries in which the government does not regulate the labor market are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a negative
An increase in the price level in the economies of U.S. trading partners will cause the aggregate expenditures function in the United States to
a. shift up. b. shift down. c. get flatter. d. get steeper.