What happens in the secondary market?
A) a corporate financial manager will raise funds for expansion of the firm
B) secondary inputs like electricity are sold
C) newly issued claims are sold by the borrowing firm to the initial buyer
D) already issued claims are sold from one investor to another
Ans: D) already issued claims are sold from one investor to another
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If market supply increases, equilibrium price will:
A. fall, causing a movement along the demand curve. B. rise and demand will shift to the left. C. rise, causing a movement along the demand curve. D. fall and demand will shift to the right.
Government can raise economic efficiency through all of the following policies, except:
A. Outlawing various forms of commercial deception B. Imposing pollution taxes on polluting firms C. Using tax money to subsidize goods with external benefits D. Fixing the prices of various resources and products
Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. This household saves -$300 at an income level of
A. $400. B. $300. C. $250. D. $125.
A temporary supply shock, such as an increase in oil prices, would
A. shift the IS curve down and to the left and leave the FE line unchanged. B. shift the IS curve up and to the right, but leave the FE line unchanged. C. shift the IS curve down and to the left and shift the FE line to the left. D. have no effect on the IS curve.