Assuming that the demand and supply of a good have moved in opposite directions, but by the same amount, the new equilibrium would represent:
a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged.
c. a decrease in price and a decrease in quantity exchanged.
d. an indeterminate change in price, but no change in quantity exchanged.
d
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According to the expectations theory of the term structure, the interest rate on a long-term bond will equal the ________ of the short-term interest rates that people expect to occur over the life of the long-term bond
A) average B) sum C) difference D) multiple
The occurrence of bank failures in the United States
a. ended after 1933 and the creation of the FDIC. b. increased dramatically during the Clinton administration. c. reappeared in intensity in the late 1990s and early 2000s. d. reappeared in the 1980s and early 1990s and again in 2006.
If we look at the equation for money demand from Irving Fisher, which of the following statements is true?
A. Money demand is not a factor of nominal income B. The price level does not impact money demand C. There isn't an explicit role for the interest rate in the equation D. Velocity does not play any role in the equation
Poverty is most likely to decrease in which of the following situations:
A. The population decreases and GDP stays constant. B. Population and the economic growth rate both decrease. C. The size of the labor force decreases. D. Population grows more rapidly than GDP.